Underlying Net Profit (excluding fair value changes of investment properties) Increased by 3.5% to HK$67.5 Million;
Declared Interim Dividend of 4.0 HK Cents per Share
HONG KONG, Nov 10, 2017 - (ACN Newswire) - Grand Ming Group Holdings Limited (the "Company" and together with its subsidiaries, the "Group", stock code: 1271.HK) today announces its interim results for FH 2017/18.
- Recorded revenue for the six month ended 30 September 2017 ("FH 2017/18") of approximately HK$815.0 million, an increase of approximately 58.4%.
- Attained net profit of approximately HK$71.4 million for FH 2017/18. Excluding the effect of fair value gains on investment properties, the Group recorded an underlying net profit for the period of approximately HK$67.5 million, increased by approximately 3.5%.
- Interim dividend of 4.0 HK cents per share is declared to pay
Total revenue of the Group for FH 2017/18 was recorded at approximately HK$815.0 million, representing an increase of approximately 58.4% from approximately HK$514.6 million for the six months ended 30 September 2016 ("FH 2016/17"). The increase in revenue was mainly attributable to the construction project at Kai Tak, Kowloon for which the construction work commenced in June 2016 and was in full swing during the period under review.
The Group's net profit for FH 2017/18 amounted to approximately HK$71.4 million (FH 2016/17: approximately HK$125.5 million), a decrease of approximately 43.1% relative to the corresponding period last year. This was mainly due to the fair value gain from revaluation of the Group's investment properties relating to high-tier data centre not being as significant as that for FH 2016/17. Excluding such fair value gains on investment properties, the Group recorded an underlying net profit of approximately HK$67.5 million for FH 2017/18, representing an increase of 3.5% or HK$2.3 million when compared to FH 2016/17.
The Board declares to pay an interim dividend of 4.0 HK cents per share, representing a payout ratio of approximately 42.1%.
During FH 2017/18, the Group's construction segment concluded with satisfactory performance, having generated HK$740.6 million in revenue, an increase of 68.0% compared to the same period of previous year. This is mainly attributable to the greater recognised revenue from the construction project at Kai Tak, Kowloon, which was in full swing in FH 2017/18. As at 30 September 2017, the gross contract value of the construction projects in progress amounted to approximately HK$1.48 billion.
The revenue derived from data centre premises leasing business slightly decreased by approximately 2.2% or HK$1.6 million, from approximately HK$73.8 million for FH 2016/17 to approximately HK$72.2 million for FH 2017/18 which is mainly due to the reduction of rental related income received from the customers for their electricity consumption. During FH 2017/18, a high utilisation rate in iTech Tower 1 was sustained and contributed a stable rental income for the Group, whereas a satisfactory occupancy in iTech Tower 2 also saw a gradual climb in rental income.
For the property development segment, the general building plan of the Group's first property development project in Sai Shan Road, Tsing Yi, New Territories, which was acquired in May 2016, had been approved with a gross floor area of approximately 400,000 square feet for private residential purposes. Development is envisioned to be two blocks of 30-storey residential buildings together with club house facilities and car parks. The development shall be completed and made fit for completion on or before 30 September 2024.
In order to enrich its property portfolio, the Group had entered into an agreement on 30 August 2017 for the purchase of an en-bloc residential building located at No. 279 Prince Edward Road West, Kowloon through acquisition of the entire interests of Market Rise Limited and its wholly-owned subsidiary, Able Business Development Limited. The property comprises 18 residential units and a clubhouse with permitted gross floor area of approximately 39,420 square feet. The occupation permit and certificate of compliance of the property had been obtained.
Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings said, "Realising that our long-standing expertise in the building construction sector could complement well the property development business, we had grasped the opportunity in 2016/17 to diversify the Group's business to property development by successfully tendering the government land in Sai Shan Road, Tsing Yi. In the first half of 2017/18, we further enrich our land bank by acquiring an en-bloc completed residential building at 279 Prince Edward Road West, Kowloon. We will proactively searches for channels to expand the land bank to strengthen our property development business. As for our construction business, the future of the industry presents a bright outlook with a mix of ongoing labour-related challenges. We continue to pursuit a prudent strategy to strike a balance between tendering new construction projects and reasonable profit margin. Lastly, investment in data centre infrastructure will be geared towards upgrades and careful considerations in developing the third high-tier data centre. In summary, the Group will continue to grow the businesses with tactful and strategic plans."
About Grand Ming Group Holdings Limited (Stock code: 1271.HK)
The Group is principally engaged in the business of building construction, data centre premises leasing and property development. As a local wholesale co-location provider of high-tier data centres, the Group is one of the dedicated service provider in Hong Kong which owns and uses the entire building for leasing to customers for data centre use. Its clients include multinational data centre operator, telecommunications company and financial institutions. With more than 20 years of experience in the construction industry, the Group also provides building construction services as a main contractor, and is involved in residential property development projects with prominent local developers, as well as offering alteration, renovation and fitting-out services for existing buildings in Hong Kong. Furthermore, the Group owns a land in Sai Shan Road, Tsing Yi for the purpose of developing a residential project with gross floor area of 400,000 square feet, as well as an en-bloc residential building in Prince Edward Road West, Kowloon.
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