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Revenue Decreased by 45% to HK$818 Million
Net profit for the Year Amounted to HK$17.5 Million
Proposed Final Dividend of 4.0 HK Cents per share |
HONG KONG, June 24, 2022 - (ACN Newswire) - Grand Ming Group Holdings Limited (the "Company" and together with its subsidiaries, the "Group", stock code: 1271.HK) today announces its annual results for the year ended 31 March 2022 ("FY 2021/22").
Highlights
-- Revenue amounted to HK$817.9 million, a decrease of 45.2% from the previous financial year.
-- Net profit for the year was HK$17.5 million, representing a decrease of 88.2%.
-- Proposed payment of a final dividend of 4.0 HK cents per share.
-- Stay positive toward the lucrative business of owning and operating data centres via expanding portfolio of developing two new centres in near future.
-- Seize an opportunity to increase land reserve for property development in Hong Kong.
-- Execute the plan for property development in Nanning, Guangxi Province, China targeting the luxurious senior residential market.
The Group's consolidated revenue decreased approximately 45.2% from approximately HK$1,492.4 million for the year ended 31 March 2021 ("FY 2020/21") to approximately HK$817.9 million for FY 2021/22. The decrease was primarily caused by lower revenue recognised from the building construction project at Kai Tak which was at the completion stage during FY 2021/22.
The Group's net profit for FY 2021/22 amounted to approximately HK$17.5 million, representing a decrease of 88.2% when compared to that of approximately HK$149 million for FY 2020/21. Earnings per share were 1.2 HK cents (2021: 10.5 HK cents). The deterioration in results for FY 2021/22 was attributed to (i) reduction of revenue and profit recognised from the Kai Tak construction project which was at the completion stage; (ii) lower profit attained from the sales of typical units of Cristallo project; and (iii) loss incurred in certain variation orders of a completed construction project. Disregarding the changes in the fair value of investment properties, the Group recorded an underlying loss of approximately HK$75.2 million (FY 2020/21: underlying profit of HK$148 million).
The Group believes a long-term high dividend policy is the best reward for our loyal shareholders. The Board now recommends paying a final dividend for FY 2021/22 of 4.0 HK cents per share. Together with the interim dividend of 4.0 HK cents per share and a special interim dividend of 20.0 HK cents per share already paid the total dividends for FY 2021/22 amounted to 28.0 HK cents per share.
During FY 2021/22, revenue derived from the construction business decreased by approximately 65.1%, from approximately HK$1,133.7 million for FY 2020/21 to approximately HK$395.5 million for FY 2021/22. The decrease was primarily attributed to lower revenue recognised from the Kai Tak construction project which was at the completion stage during FY 2021/22.
The data centre leasing business recorded healthy growth in the year under review, representing a testament to the resiliency of the portfolio and right strategy over the years. Revenue derived from its two high-tier data centre buildings, namely iTech Tower 1 and iTech Tower 2 increased approximately 18.4%, from approximately HK$164.7 million for FY 2020/21 to approximately HK$195.0 million for FY 2021/22, primarily driven by increased utilisation of data centre spaces in iTech Tower 2 by committed customers.
The Group looks ahead from a position of strength to a focus on growth, and continues to execute the strategy of creating a stable and growing cash flow stream, the Group further diversifies its footprint for high-tier data centres. The two greenfield sites at No.3 On Kui Street and No.8 On Chuen Street in Fanling, the New Territories will be developed into two new high-tier data centres for leasing purposes, with an estimated gross floor area of approximately 185,000 square feet in aggregate. Currently, the application for a change of land use change of both sites by way of land exchange is in progress. The development at No.3 On Kui Street and No.8 On Chuen Street is scheduled for completion in mid-2025 and mid-2026 respectively.
The Group's luxury residential project, CRISTALLO, at No. 279 Prince Edward Road West, Kowloon was well sold. During the year sales of 6 residential units were completed, and revenue of approximately HK$221.7 million was recognized accordingly.
"The Grand Marine" in Tsing Yi had achieved an encouraging sales performance, with over 92% of the units sold cumulatively. The certificate of compliance of the development was granted in March 2022. Accordingly, the handover of the sold units to the buyers commenced from mid-April 2022, with HK$4.75 billion revenue recognised in the first half of our financial year 2022/23.
For the property development in Mainland China, the Group acquired its first land parcel in July 2021 through a government public auction. The land parcel is located at Guangxi-ASEAN Economic and Technological Development Zone, Wuming District, Nanning City, Guangxi Province. The site has an area of approximately 574,000 square feet and is planned to be developed into a luxury residential project under the theme of leisure and healthy lifestyle targeting customers at the elderly and retirees and their families. The preliminary design comprises high-rise apartment units, villas, retail shops and a wellness centre. The estimated gross floor area of the proposed development is approximately 1,100,000 square feet. Site clearance works had been completed. Planning and design works are in progress.
Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings concluded, "The achievement of our first property development project of the Grand Marine confirms our successful transition to a property developer which emboldens us to deliver satisfactory results in the coming year. We will continue to launch the sales for the remaining units of the Grand Marine and Cristallo so as to contribute further cash inflows to the Group."
"Looking forward, the year 2022 remains a year full of challenges conditioned by heightened uncertainty, including the potential resurgence of another wave of covid-19 infections, local interest rate hike triggered by the U.S. Federal Reserve's move to hike rates and the global geopolitical tensions. On the other side, resilient demand from the local end-users, limited land supply and a low mortgage rate environment continued to support the local residential mass market. We maintain a cautiously optimistic view of the residential property market. Facing these challenges and uncertainties, we would continue to adopt our prudent approach in managing the Group's businesses and strategies, and searching meticulously for suitable new property development projects both in Hong Kong and Nanning City of Mainland China to build the long-term development roadmap of the Group. The acceleration of digital transformation in business operations and communication among individuals during the pandemic had led to a surge in demand of high-tier data centres and therefore we are committed to developing our two new data centres in Fanling and looking for new pipelines for growth."
About Grand Ming Group Holdings Limited (Stock code: 1271.HK)
The Group is principally engaged in the business of building construction, property leasing and property development. As a local wholesale co-location provider of high-tier data centres, the Group is one of the dedicated service providers in Hong Kong which owns and uses the entire building for leasing to customers for data centre use. Its clientele includes multinational data centre operators, telecommunications companies, and financial institutions. The Group operates two high-tier data centre buildings, namely iTech Tower 1 and iTech Tower 2. It also acquired two pieces of land in Fanling, the New Territories for development into two high-tier data centres. Furthermore, the Group launches a residential development project namely "The Grand Marine" at Sai Shan Road, Tsing Yi, as well as a luxury residential project, Cristallo, at Prince Edward Road West, Kowloon. The Group owns a piece of land at No.1 Luen Fat Street, Fanling, New Territories and a site at No. 41, 43, 45 Pau Chung Street, To Kwa Wan, Kowloon, for developing each into a residential-cum-retail complex with an aggregate gross floor area of approximately 67,000 square feet. In Mainland China the Group owns a piece of land at Guangxi-ASEAN Economic and Technological Development Zone, Wuming District, Nanning City, Guangxi Province with a site area of approximately 574,000 square metres and the estimated gross floor area of the proposed residential development is approximately 1,100,000 square feet.
Media Contacts:
Angel Yeung
Jovian Communications Ltd
Email: news@joviancomm.com
Topic: Press release summary
Source: Grand Ming Group Holdings Limited
Sectors: Real Estate & REIT, Construct, Engineering
https://www.acnnewswire.com
From the Asia Corporate News Network
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