Grand Ming Group Holdings Limited Announces Interim Results for the Six Months Ended 30 September 2021
HONG KONG, Nov 12, 2021 – (ACN Newswire via SEAPRWire.com) – Grand Ming Group Holdings Limited (the “Company” and together with its subsidiaries, the “Group”, stock code: 1271.HK) today announces its interim results for the six months ended 30 September 2021 (“FH 2021/22”).
– Profit for the Period amounted to HK$69.2 Million
– Declared an Interim Dividend of 4.0 HK Cents per Share
– Revenue amounted to HK$586.1 million, a decrease of 25.4% from the last corresponding period.
– Net profit was HK$69.2 million, representing a decrease of 1.4%.
– Underlying profit, excluding changes in fair value of investment properties, decreased 65.0% to HK$29.2 million
– Declared payment of an interim dividend of 4.0 HK cents per share.
– Scale up investments in upgrading the infrastructure and facilities of its existing data centres and look forward to expand the build-to-lease high tier data centre network.
– Seize opportunity to increase land reserve for property development in Hong Kong.
– Execute the plan for property development in Nanning, Guangxi Province, China and eye to explore opportunities to step into the Greater Bay Area, both target for luxurious senior residential market.
The Group’s consolidated revenue decreased 25.4% from HK$786.1 million for the six months ended 30 September 2020 (“FH 2020/21”) to HK$586.1 million for FH 2021/22. Decrease in revenue was attributed to lower revenue being recognised from the construction project in Kai Tak which was at the completion stage during the period under review.
The Group’s net profit for FH 2021/22 was approximately HK$69.2 million, representing a decrease of approximately 1.4% when compared to that of approximately HK$70.2 million for FH 2020/21. Earnings per share was 4.9 HK cents (2020: 4.9 HK cents). The Group’s underlying profit for FH 2021/22, excluding the change in fair value of investment properties, amounted to approximately HK$29.2 million, representing a decrease of approximately 65.0% as compared to an underlying profit of approximately HK$83.4 million for FH 2020/21. Underlying earnings per share was 2.1 HK cents (2020: 5.9 HK cents). The decrease in net profit was mainly due to the combined effect of: (i) lower revenue and profit recognised from construction project in Kai Tak which was at the completion stage during FH 2021/22; (ii) lower margin attained from the sales of 5 typical units of Cristallo during FH 2021/22 as compared to sales of 1 duplex and 1 typical unit during FH 2020/21; and (iii) fair value gain from the revaluation of the Group’s investment properties.
The Board declares to pay an interim dividend of 4.0 HK cents (2020: 4.0 HK cents) per share, payable on 16 December 2021 to shareholders whose names appear on the Company’s register of members on 3 December 2021.
During FH 2021/22, revenue derived from the construction business decreased by approximately 43.4% or HK$233.7 million, from approximately HK$538.0 million for FH 2020/21 to approximately HK$304.3 million for FH 2021/22. The decrease was primarily because lower revenue was recorded from the construction project at Kai Tak that was at the completion stage during the period under review.
The data centre leasing business achieved a healthy growth. Revenue derived from this segment increased by approximately 17.6% or HK$13.8 million, from approximately HK$78.1 million for FH 2020/21 to approximately HK$91.9 million for FH 2021/22, primarily driven by the increased utilisation of data centre spaces in iTech Tower 2 (one of the Group’s current data centre in Kwai Chung). The Group on the other hand execute the plan to expand its data centre network by acquiring two land parcels at No.3 On Kiu Street and No.8 On Chuen Street in Fanling, the New Territories respectively in September 2020. These two lands are planned to develop into two new high-tier data centres which are targeted to deliver in mid-2025 and mid-2026. Application for change of land use of the two lands are now in progress.
The Group’s first property development project “The Grand Marine” at Tsing Yi, the New Territories is being developed into two residential towers with clubhouse and car park facilities. It provides a saleable area of approximately 345,000 square feet for 776 residential units. The property’s pre-sale which began in November 2019 received applauding sentiment and over 92% of the residential units had been pre-sold contributing total contracted sales of approximately HK$4.8 billion. Interior fitting-out works are in progress and the project is expected to be completed by the end of 2021.
The Group’s luxury residential project, CRISTALLO, at No. 279 Prince Edward Road West, Kowloon was well sold. Sales and delivery of five apartments had been completed, and revenue of approximately HK$188.9 million was recognized accordingly.
The Group continues to grow the property development business by actively replenishing its land banks. In January 2021, the Group acquired a land parcel at No.1 Luen Fat Street, Fanling, the New Territories and intends to develop into a residential-cum-retail complex with a total gross floor area of approximately 36,000 square feet. The Group has submitted development plan for approval and thereafter will proceed with the change of land use and land premiums application. In early October 2021 the Group acquired a site located at No. 41, 43 and 45 Pau Chung Street in To Kwa Wan, Kowloon and will redevelop it into a residential-cum-commercial project which comprises a residential tower with retail shops at the lower level covering a total gross floor area of approximately 31,000 square feet. The general building plan for this project had been approved. Its foundation works had already been completed, and the superstructure works is expected to commence in the first quarter of 2022.
The Group rolls out the expansion into Mainland China as planned. In July 2021, it acquired its first land parcel through government public auction which is located at Guangxi-ASEAN Economic and Technological Development Zone, Wuming District, Nanning City, Guangxi Province with a site area of approximately 53,334 square metres. The Group plans to develop the land into a composite of residential and commercial complex coupled with luxury residence comprising villa and low-rise apartment for the elderly and retired and their families under the theme of leisure and healthy lifestyle. The land site had been handed over to the Group and site clearance works are now underway. Planning and design works are also in progress.
Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings concluded, “Turning to the long-term, we believe sustainable growth of the Group lies in parallel development of our property development and data centre build-to-lease businesses. The residential property market in Hong Kong remained resilient even in midst of the severe pandemic period which boosts our confidence to actively accumulate our land bank for future development. The surging demand for high-tier data centres prevails as remote work and learning mode shifts to a long-term trend. We will stay focused for refining our data centre portfolio so as to provide up-to-date superior infrastructure and facilities for our customers, while looking for suitable sites to expand our data centre network. On the other hand, because of the boom of ageing population, we see huge potential in the senior housing market in Mainland China especially for affluent senior population. We finally make our first move into the Mainland China via the acquisition of the land parcel in Wuming, Nanning City, PRC and we will keep on exploring potential property development projects, in particular senior residence projects, in Nanning and cities in the Greater Bay Area.”
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 operator, telecommunications company and financial institutions. The Group owns and 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 developing 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 also owns a piece of land at No.1 Luen Fat Street, Fanling, New Territories with total gross floor area of approximately 36,000 square feet for developing a residential-cum-retail complex, as well as a site at No. 41, 43 and 45 Pau Chung Street, To Kwa Wan, Kowloon for redeveloping into a residential-cum-commercial project with a total gross floor area of approximately 31,000 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 53,334 square metres. Please visit www.grandming.com.hk/eng/intro.php.
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