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Revenue Climbs 24.8% to RMB 1,839 Million
Net Profit Increases 29.8% to RMB 485 Million
Huge Development Potential for Commercial Properties
Actively Expands into Other Provinces and Cities across China |
HONG KONG, Aug 20, 2013 - (ACN Newswire) - Wuzhou International Holdings Limited ("Wuzhou International", together with its subsidiaries the "Group", stock code: 01369), a leading developer and operator of specialised wholesale markets in China and of multi-functional commercial complexes in both Yangtze River Delta and Jiangsu Province, today is pleased to announce its initial unaudited interim results upon listing.
Capitalising on opportunities and striving for breakthroughs, Wuzhou International experienced steady growth in both business development and results performance. For the period ended 30 June 2013 ("during the period under review"), revenue of the Group amounted to approximately RMB1,839.2 million, representing an increase of 24.8% as compared to the same period last year. Gross profit climbed 13.3% from RMB813.7 million during the same period last year to RMB922.0 million, with gross profit margin maintained at a high level of approximately 50%. Profit after tax and total comprehensive income attributable to owners of the parent amounted to RMB484.54 million, representing an increase of 29.8% as compared with RMB373.1 million in the same period last year. Basic and diluted earnings per share were RMB 0.14. In order to reserve capital for future development, the board of directors does not recommend the payment of an interim dividend for the six months ended 30 June 2013.
Mr. SHU Cecheng, Executive Director and Chairman of Wuzhou International said, "In the first half of 2013, the Central Government continued to implement a range of austerity policies, including restrictions on home purchases, loans and prices so as to more strictly control housing prices. However, transactions on commercial properties were considerably less constrained by the government measures than those on residential properties. In addition, relatively lower land costs, stronger customer purchasing and greater market demand indicate that commercial properties in second and third-tier cities in Yangtze River Delta have higher development potential and more robust growth momentum as compared with elsewhere in China. Leveraging its unique market positioning and development strategies, both specialised wholesale markets and multi-functional commercial complexes of the Group have been recognised by local markets. Furthermore, the Group has successfully replicated this business model and expanded to other emerging provinces and cities, such as Heilongjiang province. To fully take advantage of the future rapid growth of the PRC commercial property industry, the Group has successfully listed on the Stock Exchange of Hong Kong Limited on 13 June 2013, as a first step towards the international capital market."
During the period under review, the Group recorded contract sales and gross floor area ("GFA") sold of approximately RMB2,257 million and 279,000 sq.m., representing increases of 179% and 158% respectively as compared with the same period last year. Jiangsu Province was the main revenue stream, accounted for 55% of the Group's contract sales. Attributable to the Group's active expansion strategy towards other emerging cities, contract sales generated from other provinces and cities increased significantly, resulting in a more balanced revenue mix by regions.
For project development, the Group had a total of 27 projects as at 30 June 2013, covering Jiangsu, Zhejiang, Shandong, Hubei, Yunnan, Heilongjiang and Chongqing. In which 13 were specialised wholesale markets while 14 were multi-functional commercial complexes. As at 30 June 2013, the Group had completed a total of 10 projects or project phases with a total GFA of approximately 1,484,000 sq.m., of which approximately 859,000 sq.m. was GFA sold and delivered and approximately 155,000 sq.m. was held for lease. The Group had a total of 17 projects or project phases under development with a total GFA of 2,052,000 sq.m., of which approximately 419,000 sq.m. was pre-sold and approximately 276,000 sq.m. was held for lease. The Group had a total of 17 projects or project phases planned for future
development, with an estimated total GFA of 4,367,000 sq.m. The Group also entered into 5 MOUs, with an estimated total GFA of 1,347,000 sq.m.
During the period under review, the Group recorded a total rental income of RMB 22.3 million, representing an increase of 56.8% as compared to the same period last year. Most of the purchasers of its retail stores have entered into exclusive operation and management agreements with the Group, under which the Group received management service income from the purchasers for managing and controlling the leases of the retail shops, event organization and ancillary service provision. The Group also provided the purchasers with services such as project positioning, planning, design, construction, marketing, leasing and operation so as to ensure the centralized operation of projects. In addition, the Group also provided general property management services for tenants and occupants.
The Group strived to consolidate its existing land reserve and actively expand and develop into other areas, including Heilongjiang, for more extensive land reserve across China. As at 30 June 2013, the total planned GFA of land reserve amounted to approximately 7,044,000 sq.m., including approximately 625,000 sq.m. for completed projects (held for sale and held for lease), approximately 2,052,000 sq.m. for projects under development and approximately 4,367,000 sq.m. for projects planned for future development. The land reserve is sufficient for the development of the Group in the following three to five years. The average GFA costs per sq.m. amounted to approximate 10% of the average selling price. With lower land costs, the Group can ensure sustainable future development and higher profitability.
The Group develops and operates the specialised wholesale markets and multi-functional commercial complexes under the brands of "Wuzhou International" and "Columbus". In order to unify the brand image of its specialised wholesale markets and multi-functional commercial complexes, its professional planning and marketing team is responsible for formulating nationwide promotion strategies and coordinating marketing activities. During the period under review, both the brand awareness and visitor flow of its specialised wholesale markets and multi-functional commercial complexes recorded significant growth attributable to various marketing and promotion activities and sponsorship of numerous activities. In addition, property management, construction, design and operation capability of the Group were highly recognised within the industry. As a result, both "Wuzhou International" and "Columbus" brands were well-received in places where the Group operates.
Chairman SHU concluded, "The continued growing economy and the booming commercial property industry in China present enormous opportunities for Wuzhou International. Looking ahead, the Group aims to apply its successful business models for its business expansion in other rapidly-developing cities in China. The Group will further focus on optimizing project management strategies to enhance the synergies among property buyers, occupants and the Group. Furthermore, the Group will strive to enhance its brand awareness in the market with effective project planning and superior project quality to create a better service platform for its business partners. In addition, the Group will also grasp opportunities arising from the development of e-commerce channels. Efforts will be made to formulate innovative business and cooperation models through differentiated positioning and business planning with a view to seizing new business opportunities arising from the urbanization of China. In the future, the Group will ensure the prudent development of each new project based on the policy adjustments of the Central Government and further enhance its operation and management with an aim to achieve satisfactory results."
Contact:
Strategic Financial Relations (China) Limited
Ms. Anita Cheung
Tel: (852) 2864 4827
Email: anita.cheung@sprg.com.hk
Ms. Serine Li
Tel: (852) 2864 4835
Email: serine.li@sprg.com.hk
Ms. Ada Leung
Tel: (852) 2114 4967
Email: ada.leung@sprg.com.hk
Ms. Melody Jin
Tel: (852) 2114 4963
Email: melody.jin@sprg.com.hk
Topic: Press release summary
Source: Wuzhou International Holding Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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