Updated Date: 2023-08-31
CNQC International Holdings Limited
(Incorporated in the Cayman Islands with limited liability)
(Stock code: 1240.HK)
CNQC Announces 2023 Interim Results
Steady Improved in the Projects Development
Abundant Reserves and Stable Operation
(31 August, 2023 - 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 2023 (“the Reporting Period”).
During the Reporting Period, the Group’s total revenue was approximately HK$4.23 billion, representing an increase of approximately 10.1% over the six months ended 30 June 2022. The increase was mainly due to the increase in sales revenue recognition from property development projects as a result of the gradual catch-up of construction progress. The overall performance was affected by the high construction costs and sales costs due to global inflation and significant increase in market interest rates. The loss attributable to owners of the Company was approximately HK$147.0 million. However, the performance of the Group's core business has remained steady. The Group has adequate cash and bank balances and the current outstanding contract sums are approximately HK$15.0 billion and are enough to support the operations for the next two to three years.
Construction business
The Group proactively promotes the development of construction business in Hong Kong and Macau and is committed to expanding the scope of construction projects including foundation works for public sector and private sector, ancillary services with particular specialisation in piling works and superstructure construction. The Group also provides for superstructure works for developers. With the diversification of project types, revenue from the construction contracts in Hong Kong and Macau for the Reporting Period was approximately HK$1.54 billion. The Group had undertaken 14 new projects, mainly foundation and superstructure work for residential and commercial projects in Hong Kong, including the improvement works of Tsuen Wan Riviera Park and Tsuen Wan Park, Aviation and Maritime Education Centre at Hong Kong IVE (Tsing Yi), public housing projects in San Wan Road, Fanling and Wang Chau, Yuen Long. The total contract sum of these projects was approximately HK$2.65 billion. As at 30 June 2023, there were 49 projects on hand with outstanding contract sums of HK$5.0 billion.
The Group also strives to promote the application of Modular Integrated Construction (MIC) in construction projects in Hong Kong. During the Reporting Period, the Group continued to leverage its strengths in “MIC” construction technology to successfully obtain the first 8-storey transitional housing at Choi Hing Road, Choi Hung, which is expected to become the highest transitional house in Hong Kong.
The Group’s revenue from Singapore and Southeast Asia for the Reporting Period was approximately HK$1.74 billion, with completed 5 construction projects. During the Period, the Group successfully secured the construction contract of two proposed residential developments by the Housing & Development Board of Singapore and a proposed serviced apartment development in Malaysia. As at 30 June 2023, there were 27 construction projects on hand and the outstanding contract sums were approximately HK$10.08 billion.
Property development business
As at 30 June 2023, the property projects under development under the Group’s supervision consisted of 2 private condominium development projects and 2 executive condominium (“EC”) development projects in Singapore. The private condominium project, Forett at Bukit Timah, recorded the accumulative contracted sales rate of approximately 99% and sales revenue of approximately HK$940 million during the Period. The construction is scheduled to be completed in June 2024. Another private condominium project, The Arden, is approximately 9,689 sq.m and has launched its first pre-sale in mid-August 2023. The Group’s EC project of Tenet and Altura are expected to be completed in June 2025 and launched its first ore-sale in early August 2023 respectively. During the Reporting Period, the Group won several industry awards including the 2023 International Property Awards (Asia Pacific) for best apartment/condominium development and landscape design.
On land bank status, the Group and joint venture partners have now completely acquired 100% aggregate ownership of all 4 lots located at 163–169 Yee Kuk St in Sham Shui Po. It is intended to redevelop the site into a residential building with a commercial podium. Demolition works are expected to commence in the third quarter of 2023. The superstructure works are expected to commence in the first quarter of 2024 for another jointly acquired site in Tai Po.
Mr. Wang Congyuan, Chairman of CNQC International, said: “In the first half of 2023, the global economy remained challenging in an inflation and high interest rate, leading to increased construction and operating costs. However, the expanding demand for housing construction and infrastructure in Hong Kong and Singapore, along with the advancement of urban planning, will create more development opportunities for the construction industry. Therefore, the Group remains optimistic about the prospects of the industry. The Group also actively expands diversified construction projects by continuously improving the strategic layout of the construction business, so as to enhance the Group’s competitiveness in the industry.”
“Looking ahead to the second half of the year, with the introduction of macroeconomic stimulus policies and the gradual stability of the industry's supply chain, the performance of the construction industry will also step into recovery. Riding on development of the northern metropolis, the development of Hong Kong construction market will see a boost in the next 10 years. The Group will strive to strengthen the category coverage of construction projects to enhance competitiveness, and actively participate in promoting the sustainable development of environmental protection and energy conservation in the construction industry in Hong Kong by leveraging on the technical advantages of the “MIC” construction method. Meanwhile, the Group will also seize the growing opportunities from public housing and infrastructure construction in Singapore. In the future, the Group will continue take Hong Kong and Singapore as its major markets to explore more quality projects. Furthermore, the Group will implement the development model of driving construction work with real estate investments and seek opportunities to expand the new market of Guangdong-Hong Kong-Macao Greater Bay Area, so as to further increase the Group’s market share and competitiveness; and develop a development blueprint aiming at stability in the long run, bringing shareholders sustainable value rewards.”
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