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CNQC Announces 2019 Interim Annual Results Actively increase the land bank in Singapore and Hong Kong

Updated Date: 2019-08-30

CNQC International Holdings Limited

 (Incorporated in the Cayman Islands with limited liability)

(Stock code:1240.HK)

 

CNQC Announces 2019 Interim Annual Results

Actively increase the land bank in Singapore and Hong Kong

 

  • Started to hand over units at the iNz Residence which obtained its Temporary  Occupation Permit in April 2019
  • Further expanded in the Southeast Asia countries. The Group’s construction revenue from Singapore and Southeast Asia for the reporting period was approximately HK$1,408.8 million, increased 36.6% compared with 1H2018
  • Tendered for the acquisition of the project named Phoenix Heights. The tender was officially accepted by the vendor in July 2019. The project will become new land bank of the Group upon completion of the acquisition, and was intended to be redeveloped into residential units

 

(29 August, 2019 - Hong Kong) CNQC International Holdings Limited (“CNQC International”, “the Company”, together with its subsidiaries, collectively “the Group”, stock code: 1240.HK), a leading property developer and contractor in Singapore, is pleased to announce unaudited condensed consolidated interim results for the six months ended 30 June 2019 (“the Reporting Period”).

 

The Group’s total revenue for the Reporting Period was approximately HK$5,021.9 million (same period of 2018: approximately HK$5,138.7 million), the profit attributable to owners of the Company was approximately HK$195.2 million (same period of 2018: approximately HK$226.7 million). The Board has resolved to declare an interim dividend of HK$0.06 (same period of 2018: HK$0.06) per ordinary share and per CPS for the six months ended 30 June 2019.

 

Property development business

During the reporting period, the revenue of property development business recorded HK$3,298 million, accounting for 65.7% of total revenue. The Group started to hand over units at the iNz Residence which obtained its Temporary Occupation Permit in April 2019, the sales revenue of the project was approximately HK$2,460.0million. Le Quest is a private complex under development and it started to recognize sales revenue from year 2018 based on its percentage of completion. Therefore, it recognized pre-sales revenue of HK$723.8 million during the Reporting Period.

 

 

As at 30 June 2019, the Group’s portfolio of property development projects with significant interest consisted of 3 projects, including Le Quest, Jadescape and Goodluck Garden, across Singapore, focusing on the development of private apartments.

 

For the land bank status, on 25 July 2019, the vendors, representing over 80% of the total owners of Phoenix Heights, accepted the Group’s tender to purchase Phoenix Heights at a total consideration of SGD42.6 million (equivalent to approximately HK$243.8 million). It is a strata development with a total land area of approximately 63,000 sq.ft. After completion of the acquisition, the land site is planned for redeveloping into residential apartments with an expected plot ratio of approximately 1.4.

 

The Group officially start property business in Hong Kong in 2018, the Group has completed the acquisition of the land parcels at Yau Tong Marine Lot No. 58 and 59. Meanwhile, the Group has acquired over 80% ownership of two blocks of old residential buildings in Sham Shui Po, Hong Kong through joint venture and it is intended as a residential redevelopment project after 100% ownership is acquired. Management will continue to increase the Group’s land bank to sustain its long-term development.

 

Construction business

The Group’s Construction revenue from Singapore and Southeast Asia for the Reporting Period was approximately HK$1,408.8 million (same period of 2018: approximately HK$1,031.0 million). The Group completed 4 construction projects including 2 Housing and Development Board construction projects, 1 private project and 1 owned property development project. As at 30 June 2019, there were 22 construction projects on hand and the outstanding contract sums are approximately HK$7.98billion.

 

Revenue from the construction contracts in Hong Kong for the Reporting Period was approximately HK$314.9 million (same period of 2018: approximately HK$686.2 million). During the Reporting Period, the Group had undertaken 8 new projects, mainly foundation and superstructure work for residential, commercial and infrastructure projects in Hong Kong and Macau. The total contract sum of these projects was approximately HK$1 billion. As at 30 June 2019, there were 17 projects on hand with outstanding contract sums of HK$1.42 billion.

 

Mr. Cheng Wing On, Michael, Chairman of CNQC International said: “Looking forward, it was the major development strategy of the Group to increase the land bank. In June 2019, the Group obtained all the legal ownership of Goodluck Garden after undergoing legal procedures and therefore Goodluck Garden formally became the Group’s land bank. The site is located in a high class residential area in central Singapore and is planned to be rebuilt into over 600 residential units. In addition, the Group tendered for the acquisition of the project named Phoenix Heights. The tender was officially accepted by the vendor in July 2019. The project will become new land bank of the Group upon completion of the acquisition, and was intended to be

 

redeveloped into residential units. The Group would continue to evaluate property projects in Hong Kong, Singapore and Southeast Asia proactively, and seek opportunities to increase land bank.”

 

“In order to enhance the product quality, the Group continued to upgrade the industrialization or prefabricated prefinished volumetric construction technology (i.e. PPVC technology). We own a self-operated PPVC factory in Singapore. With the long- term technical advancement and practice of the research team, the Group has achieved a leading edge in technology. In respect of the smart community technology, the smart community platform “Hi-Life” launched by our Singapore subsidiary in 2015 ranked the foremost with respect to the local smart community service market shares in just two years. Currently, The Group continues to carry out relevant business development with partners in Vietnam and Indonesia.”

 

“To enhance the capital use efficiency, the Group will look into opportunities to invest in new and high technology industries for superior investment returns. For the benefit of the long-term development of the Group, we will continue to expand into the countries and areas in the “Belt and Road” initiative, including Malaysia, Indonesia, Vietnam, Cambodia, etc., and vigorously grasp the new market and new project opportunities in the Guangdong-Hong Kong-Macau Greater Bay Area.”