(Hong Kong, 26 June 2018) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKEX: 298) announced its annual results for the year ended 31 March 2018 (“the Period under Review”). During the Period under Review, the Group continued with its stated strategy to expand its portfolio of investment properties while at the same time pursue the solidification of its business mission. The Group recorded revenue of approximately HK$170 million (2017: HK$491.3 million) during the Year. Profit attributable to equity holders of the Company was about HK$280 million (2017: HK$1.45 billion). The decrease in profit was attributable to the absence of substantial profits recorded by the Group from disposal of the property development project in Dongguan, the PRC, in the last corresponding year. Basic earnings per share amounted to HK$11.9 cents and the net asset value per share rose to HK$1.87. The board proposed a final dividend of 2 HK cents per share and the total dividend per share amounted to 3.5 HK cents.
During the Period under Review, the Group maintained its strong financial position. Net asset value attributable to equity holders of the Company amounted to HK$4.40 billion. The Group’s aggregate of cash and bank balances and investments held for trading of over HK$1.21 billion, while bank borrowings were HK$1.63 billion.
Expanding Business in Malaysia
In December 2017, the Group acquired an office property, Central Plaza, in the prime location of Kuala Lumpur, Malaysia at a cash consideration of approximately HK$184.7 million together with outstanding bank loan of approximately MYR75.8 million (equivalent to approximately HK$152.0 million). Central Plaza is another major overseas property investment project after the Group’s acquisition of the London office property. In addition to the expansion in geographic coverage, this acquisition also made good use of the Group’s cash on hand to expand the property portfolio and thus enhance the recurring rental income.
Hotel Building and Villas in Xiamen were All Leased Out
The Group’s hotel and resort development project in Xiamen comprises a 6-storey hotel building with 100 guest-rooms (gross area of 9,780 sq. m.) and 30 villas (aggregate GFA of about 9,376 sq. m.). The hotel building was leased to 廈門佲家鷺江酒店 as “鷺江•佲家酒店” (Mega Lujiang Hotel) that has commenced operation in summer 2017. On 30 April 2018, a total of 3 villas situated right next to the hotel building were leased to 廈門佲家鷺江酒店 to complement the operation of the Mega Lujiang Hotel while the remaining 27 villas have been leased to independent third parties. The lease term of the hotel building and 30 villas is 10 to 12 years. The total annual rental is approximately RMB25.9 million (equivalent to approximately HK$29.6 million) with rental yield of about 6%.
A Commercial Podium of Chuang’s Mid-town in Anshan was successfully Leased Out
Chuang’s Mid-town in Anshan of Liaoning Province consists of a 6-level commercial podium, providing an aggregate GFA of about 29,600 sq. m.. The Group has entered into an agreement to lease the entire commercial podium to a furniture and home finishing retailer as anchor tenant for a period of 15-year and the tenancy is expected to commence in the third quarter of this year.
Above the podium stands a twin tower with 27- and 33-storey respectively, offering a total GFA of about 62,700 sq. m.. The Group has appointed international real estate agencies as leasing agents to carry out marketing campaign as serviced apartments and office. On an estimated rental income of about RMB25 million per annum, Chuang’s Mid-town will generate a rental yield of 4%.
Mr. Albert Chuang Ka Pun, Managing Director and Executive Director of Chuang’s China, stated “Looking forward, the Group will focus on the business initiatives to launch the sales of the property development project in Tuen Mun, Hong Kong. In addition, we will continue to pursue the business strategy to identify opportunities to realize the appreciation in value of the investments in the United Kingdom and the property development project in Panyu, the PRC and generate returns for the shareholders. “
About Chuang’s China Investments Limited (HKEX:298)
Chuang’s China Investments Limited is principally engaged in property development and investments as well as securities investments and trading. The Group has recently strengthened its investment portfolio through the acquisition of a commercial building in London and the acquisition of a 518-acre cemetery in Sihui, Guangdong Province. Chuang’s China will continue to explore other potential investment opportunities and expand its real estate and property-related businesses.