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CNQC Announces 2020 Interim Results Waiting for Increasing Land Bank Opportunities

Updated Date: 2020-09-01

 

CNQC International Holdings Limited  (Incorporated in the Cayman Islands with limited liability)

(Stock code: 1240.HK)

 

CNQC Announces 2020 Interim Results

Waiting for Increasing Land Bank Opportunities 

 

  • Initiated the pre-sale of the property development project “Forett at Bukit Timah (福瑞軒)” in Singapore in August 2020 which is a private apartment development project on freehold land with a total of 633 residential units and 2 shops and ideal sales performance
  • Continuously evaluated the high-quality land and real estate projects in Hong Kong, Singapore and Southeast Asia, and increasing its land bank when there are opportunities
  • Hong Kong government has strongly encouraged the Modular Integrated Construction (MiC), also known as Prefabricated Prefinished Volumetric Construction (PPVC) in Singapore. The Group as one of the pioneers of PPVC construction technology in Singapore with years of experience, is introducing this technology and experience to Hong Kong in order to contribute to the local industry and community.

 

 (31 August, 2020 - 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 its unaudited interim results for the six months ended June 30 2020 (“the Reporting Period”).

 

During the reporting period, the Group’s total revenue was approximately HK$2.2 billion, the profit attributable to owners was approximately HK$38.2 million. The decrease of total revenue was mainly due to less revenue resulting from the coronavirus lockdown measures imposed by the government of Singapore during the Reporting Period and also the impact on the recognition of revenue due to a temporary suspension of both the construction and property sales activities of the Group.

 

Revenue from the foundation and construction in Hong Kong and Macau for the Reporting Period was approximately HK$600.7 million, up by 90.8% over the same period of last year, and this sector is relatively ideal.

 

 

Property development business

During the reporting period, the revenue of property development business recorded HK$428.3 million, approximately 19.4% in total revenue. The Group started to hand over units at a private condominium development project Le Quest which obtained its Temporary Occupation Permit (“TOP”) in March 2020 and realized sales revenue of approximately HK$390.0 million.

 

As at 30 June 2020, the Group’s portfolio of property projects under development withsignificant interest consisted of 2 projects across Singapore including Jadescape (順福軒) and Forett at Bukit Timah (福瑞軒) which are focusing on the development of private apartments.

 

On land bank status, Phoenix Heights is a strata development in Singapore with a total land area of approximately 63,000 sq.ft. and the total estimated GFA is 88,200 sq.ft. The land site is planned for redeveloping into private condominiums with around 100 units.

 

In 2018, the Group acquired the land parcels at Yau Tong Marine Lot No. 58 and 59 and the extensions thereto. Town Planning Board approved the planning application for residential construction in June 2020. The Group acquired over 80% ownership of two blocks of old residential buildings in Sham Shui Po, Hong Kong through joint venture. After 100% ownership is acquired, application for Compulsory Sales for Redevelopment has been processing by Lands Tribunal.

 

Construction business

The Group’s revenue from Singapore and Southeast Asia for the Reporting Period was

approximately HK$1,174.1 million. The Group completed 2 construction projects including 1 Housing and Development Board (“HDB”) construction project and 1 owned property development project. As at 30 June 2020, there were 31 construction projects on hand and the outstanding contract sums were approximately HK$6.5 billion.

 

For Hong Kong and Macau, revenue from the construction contracts in Hong Kong and Macau for the Reporting Period was approximately HK$600.7 million. During the Reporting Period, the Group had undertaken 8 new projects, mainly foundation and superstructure work for residential and commercial projects in Hong Kong. The total contract sum of these projects was approximately HK$1.1 billion. As at 30 June 2020, there were 18 projects on hand with outstanding contract sums of HK$1.7 billion.

 

Mr. Cheng Wing On, Michael, Chairman of CNQC International, said: “The Group had already initiated the pre-sale of the property development project ‘Forett at Bukit Timah (福瑞軒)’ in Singapore in August 2020. This project is a private apartment development project on freehold land with a total of 633 residential units and 2 shops and equipped with an underground parking lot and public facility. The Group will continue to sell completed units of other property development projects as planned and accelerate the construction projects in progress. In addition, the Group will continue to evaluate the high-quality land and real estate projects in Hong Kong, Singapore and Southeast Asia and increase its land bank when there are opportunities.”

 

“In recent years, the Hong Kong government has strongly encouraged the Modular Integrated Construction (MiC), also known as Prefabricated Prefinished Volumetric Construction (PPVC) in Singapore, which upgrades the conventional in-situ construction to the industrialized construction production in order to control the quality of construction through advanced largescale production equipment and instruments, so as to enhance construction productivity and shorten the construction period. The production within the factory could also reduce construction waste and community pollution, thereby achieving the environmental protection goal in reducing resource consumption. The Group, as one of the pioneers of PPVC construction technology in Singapore with years of experience, is introducing this technology and experience to Hong Kong in order to contribute to the local industry and community.”

 

“Besides, with the outbreak of the epidemic, we believe that the global focus on the pharmaceutical and healthcare industries will increase significantly. Upon careful consideration, the Group invested in a pharmaceutical fund in the first half of this year which the Group has agreed to invest up to HK$200.00 million. The fund mainly invests in new drug development and the manufacturing companies to deliver products including super antibiotics against super bacteria, and new drugs for the treatment of rheumatoid arthritis, chronic obstructive pulmonary disease, and atopic dermatitis. The Group becomes a financial investor in the healthcare and biotechnology related business by the fund. For the benefit of the long-term and steady 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 investment opportunities in the Guangdong-Hong Kong-Macau Greater Bay Area. ”