Media Coverage

CNQC INTL Annouced 2015 Annual Results-Profit Attributable to Owners of the Company Increased 108.9%

Updated Date: 2016-03-23





(Stock Code: 1240)


CNQC International Announced 2015 Annual Results

Profit Attributable to Owners of the Company Increased 108.9%


Financial Highlights

For the Year Ended 31 December (HK Million)



Changes (%)





Gross profit




Gross profit margin




Profit attributable to owners of the company




Basic earnings per share




Proposed a final dividend per share






[23 March 2016, Hong Kong] CNQC International Holdings Limited (“CNQC International” or the “Company”, together with its subsidiaries, the “Group”, stock code “1240”), announced its annual results for the year ended 31 December 2015 (“the Reporting Period”).


In 2015, the global economy has slowed down, with an oversupply in Singapore property market, and a falling demand in Singapore construction market, the consumer remained cautious. Against the backdrop, leveraging on the brand, reputation and quality operating system established over years, the Group took a prudent approach to seize the opportunities in the land market in Singapore and achieved rapid growth. Total revenue of the Group was approximately HK$11.1 billion (2014: approximately HK$7.3 billion), representing an increase of 51.4% as compared with last year. The increase was mainly attributable to the recognition of property sales in Singapore upon the issuance of temporary occupation permit. The Group’s gross profit margin was approximately 16.3%, representing an increase of 1.6pts as compared to 2014. Gross profit increased by 68.1% to HK$1.8 billion. And the profit attributable to owners of the Company was HK$577.3 million (2014: approximately HK$276.3 million), representing an increase of approximately 108.9%. Basic earnings per share was HK$0.461.


The Board proposed to pay a final dividend of HK$0.12 per share to share the favourable results with the investors so as to reward the shareholders, which is in line with the dividend policy of the Group.


Singapore Segment

The Group mainly focuses on the development of Executive Condominiums (“EC”) apartments and tendering for public construction work and private construction work in Singapore. During the Reporting Period, the revenue derived from the projects in Singapore was approximately HK$9.4 billion. Out of the HK$9.4 billion, the aggregate contracted sales of properties amounted to HK$6.4 billion, representing an increase of 62.7% over that of last year. The average selling price was approximately HK$50,083 per sq.m.. The revenue from the Singapore construction contracts was approximately HK$3,003.1 million, increased by 23.9% compared to last year.


During the Reporting Period, the Group achieved sales area of 127,362 sq.m. through RiverSound Residence and River Isles project. Besides, the Group’s portfolio of property development projects with majority interest consisted of 5 projects across Singapore, and the saleable gross floor area (“GFA”) of these properties which had not been sold or pre-sold was 124,326 sq.m.. Meanwhile, the Group seized the opportunities in the land market in Singapore and acquired a new parcel of land through a wholly-owned subsidiary together with other independent third parties in which the Group held the largest interest of 26% in this land. The land cost was approximately HK$877.8 million with the total GFA amounted to approximately 49,158.3 sq.m., which is intended to be developed as EC.


For the construction business, the Group completed the construction projects including HDB Seng Kang N4C24, HDB Hougang N4C18 and China Cultural Centre, with one new project awarded by the Housing and Development Board (“HDB”) in November 2015, with an estimated contract sum of approximately HK$900 million. As at 31 December 2015, there were 9 external private construction projects on hand with another 5 construction projects of the Group’s property segment and the outstanding contract sums are approximately HK$3,345.5 million and HK$1,479.8 million respectively.


Hong Kong Segment

The Group mainly engages in foundation works in Hong Kong, and ancillary services with particular specialisation in piling works and superstructure construction for both private and public sector. During the Reporting Period, the revenue derived from the projects in Hong Kong and Macau was approximately HK$1.7 billion, representing an increase of 77.5% over the same period in 2014. The Group commenced work on several new sizable foundation and superstructure construction projects with a total contract sum of approximately HK$1,357.6 million. As at 31 December 2015, the outstanding contract sums of ongoing projects are approximately HK$1,495.3 million.


Mr. Cheng Wing On, Chairman of the Board and Executive Director of CNQC International said, “The Group recorded considerable achievements, not only further consolidates and optimizes our operations in existing markets but also requires continual addition to the existing land bank of the Group in order for the sustainable project development in the coming years. Although the residential property market is expected to cool further, with the continual demand of construction work in both Singapore and Hong Kong, the Group expects that our business remains stable development and sustainable competitiveness. As the only offshore listing platform of Guotsing Group, the Group will actively explore the opportunities in the overseas markets by leveraging on the experience and the strength of Guotsing Group over the course of the overseas expansion and development. The Group will fully capitalise the experience and resources and leverage on its function as an offshore listing platform in order to create value to shareholders in the long run.”


-       End -


About CNQC International Holdings Limited

CNQC International is principally engaged in the foundation business and machinery rental business in both Hong Kong and Macau. On 23 May 2015, the Company announced an aggregate of 951,872,727 CPS will be issued and allotted to Guotsing SG or its nominee for the acquisition of the property development and construction businesses in Singapore. The integrated business model covering the full industry chain is expected to increase the cost efficiency and enhance the competitive advantages of the Company, as well as to improve the fund raising and financing capabilities of the Company. According to Knight Frank, during the period from 2010 to 2014, the Target Group was ranked the fifth in terms of the number of new sales units sold for private housing and executive condominium projects launched in both the Outside Central Region as well as in the entire Singapore, with a market share of approximately 3.9% and 3.0%, respectively. According to Rider Levett Bucknall, during 2010 to 2014, the market shares of the Target Group in the residential construction market amount to 4.3% in Singapore (measured by the residential construction contracts amount secured by the Target Group against the total amount of the residential construction contracts available in Singapore).