CNQC Announces 2021 Interim Results The Profit Attributable to Owners of the Company Surges 3.19 times to HK$160.0 million

CNQC International Holdings Limited

 (Incorporated in the Cayman Islands with limited liability)

(Stock code: 1240.HK)

CNQC Announces 2021 Interim Results

The Profit Attributable to Owners of the Company Surges 3.19 times

to HK$160.0 million

Ÿ The Group’s total revenue for the Reporting Period increased 25.3% to approximately HK$2,759.6 million. The profit attributable to owners of the Company was approximately HK$160.0 million, representing an increase of 319% compared with same period of last year.

Ÿ Site foundation works of Yau Tong project have commenced in the third quarter of 2021, while the Tai Po project jointly developed with Vanke Property (Hong Kong) Company Limited, site foundation works and excavation works are expected to commence in the fourth quarter of this year.

Ÿ The Group will continue to improve and apply green construction technology MiC in Hong Kong, which is called “PPVC” in Singapore. The Group has established prefabricated component factories in Shandong and Hong Kong. After the factory in Shandong commenced operation at the end of last year, the Hong Kong factory are expected to be officially put into operation in the second half of this year.

 (31 August, 2021 - 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 2021 (“the Reporting Period”).

The Group’s total revenue for the Reporting Period was approximately HK$2,759.6 million (2020 1H: approximately HK$2,203.2 million), representing an increase of approximately 25.3% compared with same period of last year. The increase was mainly due to more revenue from construction projects during the Reporting Period.

During the Reporting Period, the Group recorded a net profit of approximately HK$144.2 million (2020 1H: approximately HK$22.8 million), representing an increase of approximately 532% compared with same period of last year. The profit attributable to owners of the Company was approximately HK$160.0 million (2020 1H: approximately HK$38.2 million), representing an increase of 319% compared with same period of last year. The increase in the net profit was mainly due to the increase in share of net profits of associated companies in property development projects.

The Group’s gross profit margin during the Reporting Period was approximately 5.0% (2020 1H: approximately 5.9%). The decrease in margin was mainly due to the temporary shortage of construction workers and the increase in labor cost in Singapore after the Covid-19.

During the period from April to June 2020, all construction and property sales activities were temporarily suspended due to the coronavirus lockdown measures imposed by the Singapore government and therefore the Group recognised less revenue during the first half of 2020. The construction and property sales activities have gradually resumed since the second half of 2020.

Property development business

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$23.0 million. Forett at Bukit Timah is a private condominium project under development and it recognizes sales revenue based on its percentage of completion. The Group holds 51% interest of this project. The project realized sales revenue of approximately HK$401.0 million.

As at 30 June 2021, the Group’s portfolio of property projects under development withsignificant interest consisted of 3 projects across Singapore including Jadescape, Forett at Bukit Timah and Phoenix Road Project.

On land bank status, the Group has 3 projects in Hong Kong. Yau Tong project is under the lease modification procedures are currently in progress. Site foundation works have commenced in the third quarter of 2021.  The Group and joint venture partners have acquired over 86% ownership in two blocks of residential buildings at Sham Shui Po. Application for Compulsory Sales for Redevelopment is currently being handled by Lands Tribunal and additional hearings are expected to be held in the second half of 2021. General Building Plan approval was granted by the Buildings Department in October 2020.The site foundation and excavation works are expected to commence in the fourth quarter of this year for the land parcel located at Ma Wo Road in New Territories, Hong Kong under Tai Po Town Hong Kong, jointly developed with Vanke Property (Hong Kong).

Construction business

Revenue from the construction contracts in Hong Kong and Macau for the Reporting Period was approximately HK$681.4 million (2020 1H: approximately HK$600 million). During the Reporting Period, the Group had undertaken 12 new projects, mainly foundation and superstructure work for residential and commercial projects in Hong Kong and Macau. The total contract sum of these projects was approximately HK$1.7 billion. As at 30 June 2021, there were 33 projects on hand with outstanding contract sums of HK$2.7 billion.

The Group’s revenue from Singapore and Southeast Asia for the Reporting Period was approximately HK$1,652.0 million (2020 1H: approximately HK$1,174.1 million). The Group completed 3 Housing and Development Board (“HDB”) construction projects. As at 30 June 2021, there were 31 construction projects on hand and the outstanding contract sums were approximately HK$10.0 billion.

Mr. Cheng Wing On, Michael, Chairman of CNQC International, said: “As the global economy is expected to recover gradually, on the one hand, the Group consolidates its property development and construction business, on the other hand, it strives to seize opportunities in the recovery environment. Looking ahead to the Singapore market, private house prices rose by 6.1% over the past year due to the low interest rate environment and the spillover demand from the collective sale market, the largest increase in Asia. The management believes that Singapore is still a hot spot for investment in the region and remains one of the core business growth of the Group in the future. The Group will continue to seek for opportunities to increase land bank in the region.”

“As for the Hong Kong market, the Group continues to actively evaluate suitable prestigious land sites and real estate projects, including cooperation with large local developers and investors. In order to promote environmental protection and maintain product quality, the Group will continue to improve and apply green construction technology, including the adoption of “ Modular Integrated Construction” (“MiC”) in Hong Kong, which is called “ Prefabricated Prefinished Volumetric Construction” (“PPVC”) in Singapore. In fact, in recent years, many government or private projects require builders to adopt this construction technology. At present, the Group has established prefabricated component factories in Shandong and Hong Kong. After the factory in Shandong commenced operation at the end of last year, the Hong Kong factory are expected to be officially put into operation in the second half of this year, so as to further strengthen the operating capacity of the local construction sector and make contributions to the local construction industry and society.”

“In addition to the above regions, the Group continues to explore countries and regions along the Belt and Road, including Malaysia, Indonesia, Vietnam and Cambodia, and seize the development opportunities of Guangdong-Hong Kong-Macao Greater Bay Area, so as to bring sustained and steady growth and development to the Group.”