Press Room Categories: Chuang's China Investments Limited

(Hong Kong, 25 November 2020) Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKEX: 298) announced its interim results for the six months ended 30 September 2020 (the “Period under Review”).

During the Period under Review, the Group’s revenues significantly increased by about

20 times to HK$1,683.3 million (2019: HK$81.3 million) and sales of development properties tremendously increased by about 108 times to about HK$1,617.4 million (2019: HK$14.8 million). Profit attributable to equity holders of the Company was HK$423.4 million (2019: HK$21.3 million), indicating an increase of about 19 times over the same period last year. Earnings per share were 18.03 HK cents (2019: 0.91 HK cent). The board proposed an interim dividend of 1.5 HK cents per share.

The increase in revenue was mainly due to the recognition of completed sales of The Esplanade, Tuen Mun in Hong Kong, resulting in a robust growth in the sales of the development property. The sales of the pre-sold 366 units, of which 358 residential units have been handed-over to end-buyers during the period ended 30 September 2020.

In September 2020, the Group successfully completed the disposal of the investment property in the United Kingdom for approximately GBP93.8 million (equivalent to approximately HK$971.5 million). The disposal greatly strengthened the Group’s financial position.Mr. Albert Chuang Ka Pun, Chairman of Chuang’s China, stated “Although the Covid-19 pandemic causing the overall economic downturn and the slump of market value of the property investment market, the completion of the disposal of investment property in the UK kept the group financially stable. Looking forward, the Group will not only seek new opportunities to expand land bank for property development, but also continue to identify suitable investment projects to expand on investment properties portfolio. At the same time, the Group will focus on business opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area and cities along the Belt and Road Initiative.”

(Hong Kong, 26 November 2019) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKSE: 0298) announced its interim results for the six months ended 30 September 2017 (“the Period under Review”). During the Period under Review, revenues of the Group was approximately HK$81.3 million, decreased by approximately 35.9% compared to HK$126.9 million of the last corresponding period in 2018 as a result of the decrease in sales of properties in the People’s Republic of China (the “PRC”). Profit attributable to equity holders of the Company for the six months ended 30 September 2019 amounted to HK$21.3 million (2018: HK$94.3 million). Earnings per share was 0.91 HK cent (2018: 4.01 HK cents).

Mr. Albert Chuang Ka Pun, Managing Director and Executive Director of Chuang’s China, said “The global political and economic uncertainty continue to affect business prospects and confidence of investors. The PRC’s economy is facing challenge to maintain its growth whilst Hong Kong is facing its unprecedented internal challenge, all these factors have caused a slow-down on the Group’s business initiatives in the short term. However, the Group believes that the fundamental factors underpinning the long-term healthy growth in the PRC will remain intact. Going forward, the Guangdong-Hong Kong-Macao Greater Bay Area and Belt and Road Initiative will be the growth drivers for the PRC and create business opportunities for Hong Kong. To weather the challenges, the Group will exercise stringent control over its financial position by adhering to the ‘cash is king’ principle, while closely monitoring business opportunities under this strategy.”

(Hong Kong, 31 January 2018) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKSE: 0298) announced that the proposed ordinary resolution of acquiring Central Plaza, commercial property in Kuala Lumper, Malaysia, at an aggregate consideration of MYR175.0 million (equivalent to approximately HK$336.0 million), as set out in today’s Special General Meeting was duly passed by 99.33% of shares represented by votes (representing 53,643,153 shares of Chuang’s China).

Located in the heart of central business district and prestigious shopping area of Kuala Lumpur, Central Plaza is a 29-storey high rise office building having a total gross floor area (“GFA”) of approximately 382,000 square feet. It comprises of retail and office spaces with total GFA of approximately 254,000 square feet (on total net lettable area basis is approximately 195,000 square feet) and 298 car parking spaces with total GFA of approximately 128,000 square feet. As at 30 November 2017, Central Plaza had an occupancy rate of approximately 71%. Based on the valuation and the monthly rental and other income of approximately MYR875,000 (equivalent to approximately HK$1.7 million) as at 30 November 2017, the gross rental yield of Central Plaza is approximately 6%.

Miss Ann Li Mee Sum, Deputy Chairman of Chuang’s China, stated “Malaysia is one of the leading active partners in the ‘Belt and Road’ initiative, which enjoys critical geographical location. Besides benefiting from the aspect of holistic connectivity, the ‘Belt and Road’ initiative could contribute to the local economic development of Malaysia. Through the acquisition of Central Plaza, the Group can utilize its cash on hand and invest and expand into the Malaysian market. Meanwhile, the acquisition is able to increase the Group’s property investment portfolio and enhance recurring rental income. After completion of transaction, the Group will monitor the market conditions to optimize investment return of Central Plaza”

(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.

Results Highlights:

• The Group recorded revenue of HK$491.3 million
• Profit attributable to equity holders of the Company recorded a substantial increase of 16 times to HK$1.45 billion
• The disposal of development project in Dongguan brought a lucrative net profit after taxation of approximately HK$1.2 billion, representing a four-fold return on this investment.
• The board proposed a final dividend of 2.0 HK cents per share and a special dividend of 2.0 HK cents per share. Total dividend per share increased by about 83% to 5.5 HK cents. The dividend yield was approximately 8.5%.

(Hong Kong, 27 June 2017) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKSE: 0298) announced its annual results for the year ended 31 March 2017 (“the Period under Review”). During the Period under Review, the Group recorded revenue of approximately HK$491.3 million (2016: HK$470.0 million), representing a slight increase of 4.5% compared with the corresponding period. Such increase was mainly attributable to the net gain on the disposal of a property development project at Dongguan, which brought a lucrative net profit after taxation of approximately HK$1.2 billion, representing a four-fold return on this investment. Profit attributable to equity holders of the Company also escalated 16 times and reached HK$1.45 billion (2016: HK$85.0 million). Basic earnings per share amounted to HK61.57 cents. The board proposed a final dividend of 2.0 HK cents per share and a special dividend of 2.0 HK cents per share. Total dividend per share increased by about 83% to 5.5 HK cents. The dividend yield was approximately 8.5%.

Strategic adjustment of business directions actualize investment returns

During the Period under Review, Chuang’s China captured the rising market trend and disposed of several investment projects to unleash their values in return of cash. In mid-2016, the Group disposed of its development project in Guangdong at approximately RMB1.3 billion (equivalent to approximately HK$1.5 billion), and earned a lucrative net profit after taxation of approximately HK$1.2 billion, representing a four-fold return on this investment. The disposal demonstrated that substantial value is embedded in the Group’s property development assets as a result of their low book cost. Then in January 2017, the Group disposed of the investment in 50.0 million shares in Shenzhen Harmony Investment Funds Company Limited (“深圳市同心投資基金股份公司”), at a cash consideration of RMB64.5 million (equivalent to approximately HK$74.2 million). A gain of HK$16.7 million was realized from the disposal that represents a 30% return on this investment.

Eyes further expansion of investment portfolio to property market in London  

In late 2016, the Group acquired an office property in the prime location of City of London, United Kingdom, at a net consideration of approximately GBP79.0 million (equivalent to approximately HK$764.0 million), which arose a negative goodwill of HK$38.9 million. London, being one of the world’s leading financial centers, is well sought-after by global investors for its market liquidity and transparency. The acquisition of this prime office property provides the Group with a steady stream of rental income as well as a corresponding increase in its capital value over time. This move also marks an important milestone in the Group’s expansion of the real estate investment business.

Extends to China’s cemetery business to meet the growing market demand

In March 2017, Chuang’s China further achieved another strategic expansion and completed the acquisition of an effective 85.5% interests in Fortune Wealth at RMB398.0 million (equivalent to approximately HK$449.0 million). Situated at Sihui, Guangdong Province, Fortune Wealth Memorial Park is currently the largest planned cemetery project in China with comprehensive services, facilities and city connections. China’s population is aging rapidly, yet, owing to the limited supply of quality private cemetery services in Guangdong, cemetery operation has emerged as a booming business in the mainland. Furthermore, as the Private Columbaria Bill comes into effect, there will be increasing demand for authorized private columbarium niches in Hong Kong. The Group believes that its cemetery business can fill the existing market gap in Mainland China and Hong Kong and accommodate the growing demand for niches and cemetery among the two areas.

Mr. Albert Chuang Ka Pun, Managing Director and Executive Director of Chuang’s China, stated “Chuang’s China achieved a momentous year of financial growth and completed a series of strategical moves that not only realign the Group’s business directions, but also substantially enhanced our financial capabilities. Looking forward, the Group will continue to seek the suitable investment opportunities to further promote the sustainable development of business and generate returns for the shareholders. “

(Hong Kong, 7 December 2017) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKSE: 0298) announced that the Group acquired Central Plaza, a commercial property in Kuala Lumper, Malaysia, at an aggregate consideration of MYR175.0 million (equivalent to approximately HK$336.0 million) by entering into the sale and purchase agreement with Chuang’s Consortium International Limited (HKSE: 0367).

Located at the heart of central business district and prestigious shopping area of Kuala Lumper, Central Plaza is adjacent to Pavilion KL, which is also the landmark shopping complex in Jalan Sultan Ismail. The 29-storey commercial building has a total gross floor area of 382,000 square feet, offering a total 195,000 square feet of retail and office area, as well as 298 car parking spaces with total area of 128,000 square feet. As at 30 November 2017, the occupancy rate of Central Plaza was approximately 71%.

According to the valuation as appraised by an independent valuer, Central Plaza was valued at MYR175.0 million (equivalent to approximately HK$336.0 million) as at 30 November 2017. On an estimated monthly rent of about MYR875,000 (equivalent to approximately HK$1.7 million), the gross rental yield of Central Plaza is approximately 6%.

Miss Ann Li Mee Sum, Deputy Chairman of Chuang’s China, stated “Central Plaza is another major overseas investment project after the Group’s acquisition of London office last year. In addition to the expansion in geographic coverage, this acquisition also makes good use of the Group’s cash on hand to expand our property portfolio and thus enhance our recurring rental income. Under the ‘Belt and Road’ initiative and its development strategy, the Sino-Malay relations in economy and trading are heightening in recent years. More and more Chinese enterprises invest in Malaysia and set up their offices in the area that promote vigorous growth in infrastructure as well as economic and tourist development. Benefiting from the booming local economic activities, coupled with Central Plaza’s prime location and comprehensive commercial facilities, the Group is confident about the growth prospects and returns of this project.”

(Hong Kong, 27 November 2017) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKSE: 0298) announced its interim results for the six months ended 30 September 2017 (“the Period under Review”). During the Period under Review, the Group’s revenue decreased to approximately HK$91.7 million (2016: HK$432.2 million), which was mainly attributable to the slowdown in flow of property development projects available for sales. Despite this, profit attributable to equity holders of the Company increased to HK$96.4 million (2016: HK$87.7 million) as a result of the increase in fair value gain of the investment property in London at HK$122 million. The board proposed an interim dividend of 1.5 HK cents per share.

In the last fiscal year, Chuang’s China had completed a series of strategic business transformation that diversified the portfolio and direction of its investments; different positive results are also beginning to emerge along with the related business adjustment. In late 2016, the Group acquired an office property in the prime location of London, at a net consideration of approximately GBP79 million, which provides the Group with a steady stream of rental income as well as an increase in its capital value. As at 30 September 2017, the valuation of the London property was approximately GBP95 million, which appreciated over 20% in less than a year after acquisition, mirroring the Group’s unique insight and its first-mover advantage in capturing the upward movement in local property market.

Mr. Albert Chuang Ka Pun, Managing Director and Executive Director of Chuang’s China, stated “Chuang’s China has been relentlessly shifting its focus to other business or properties from the excessive concentration of real estate projects in Hong Kong and the Mainland with a view to achieving more stable and diversified source of income, such as our move to expand the hotel and resort business. Moreover, the Group will also increase the number of investment properties in different markets in order to further expand the Group’s revenue sources and enhance its profitability.”

(Hong Kong, 25 June 2019) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKEX: 298) announced its annual results for the year ended 31 March 2019 (“the Period under Review”).

During the Period under Review, due to the steady and recurring income of property investment business and the securities and bond investment segment, the Group recorded revenue of approximately 200 million (2018: HK$174 million) during the Year. Profit attributable to equity holders of the Company was about 168 million (2018: HK$280 million). Basic earnings per share amounted to HK$7.15 cents (2018: HK$11.89 cents) and the net asset value attributable to equity holders of the Company amounted to HK$4250 million. The Board proposed a final dividend of HK$2 cents per share and the total dividend per share amounted to HK$3.5 cents.

During the Period under Review, the Group started the pre-sales of the residential properties and received satisfactory response. The Esplanade where is located at Yip Wong Road in Tuen Mun. Out of the total 371 residential flats, a total of 352 units have been pre-sold at aggregate amount of about 1570 million up-to-date and received an aggregate deposit amount of 460 million. An additional 990 million is expected to be received before the end of September 2019, whereas the remaining balance of 120 million will be received between October 2019 and completion of the sales. These contracted sales will be recognized as revenues in the Group’s financial statement when the properties are handed-over to end-buyers. The Group intends to hold the commercial properties with total GFA of 25,813 sq. ft. for investment purpose.

Mr. Albert Chuang Ka Pun, Managing Director and Executive Director of Chuang’s China, stated “Apart from seeking new opportunities to replenish land bank for property development, the Group will also identify suitable investments to expand investment property portfolio, in order to enhance steady and recurring rental income. As for geographical coverage, the Group will identify opportunities not only in Hong Kong but also on cities in the PRC with focus on the Guangdong-Hong Kong-Macao Greater Bay Area and will actively diversify to overseas countries especially along the Belt and Road Initiatives. The Group will diversify to other businesses with steady income, expand the Group’s sources of revenue, enhance the Group’s profitability, and maximize return for its shareholders. “

(Hong Kong, 27 November 2018) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKSE: 0298) announced its interim results for the six months ended 30 September 2018 (“the Period under Review”). During the Period under Review, steady development of each business sector contributed to a stable revenue. Revenues of the Group was approximately HK$126.9 million (2017: HK$82.9 million), up approximately 53.1% compared to that of the last corresponding period as a result of the increase in sales of properties in the People’s Republic of China, rental income, and the gain on change in fair value of investment properties mainly derived from the investment properties in Anshan, Changan and the United Kingdom. Profit attributable to equity holders of the Company amounted to HK$94.3 million (2017: HK$96.4 million). Earnings per share was 4.01 HK cents. The Board proposed an interim dividend of HK$1.5 cents per share.

The Company is pleased that MSCI has added the Company as one of the constituent securities of MSCI Micro Cap Hong Kong Index. MSCI Indices are worldwide adopted benchmarks by investors for stocks selection and monitoring. The selected equity must meet the market value, liquidity, and liquidity requirements, which give the indices high reference value. This also represents a strong recognition of Chuang’s China in the capital market.

Mr. Albert Chuang Ka Pun, Managing Director and Executive Director of Chuang’s China, stated “The Group remains cautiously optimistic about the property market in the PRC, and will focus on the marketing of residential project The Esplande, Yip Wong Road, Tuen Mun. The Group will keep monitoring new investment opportunities and further diversify to other businesses with steady income in the PRC and overseas.”

(Hong Kong, 24 June 2020) – Chuang’s China Investments Limited (“Chuang’s China” or “the Group”) (HKEX: 298) announced its annual results for the year ended 31 March 2020 (“the Period under Review”).  

During the Period under Review, the Group was affected by the downturn in the macro-economy, recording revenue decreased by 11.2% to HK$177.5 million (2019: HK$199.8 million) during the year. The net asset value attributable to equity holders of the Company amounted to HK$3,769.7 million and the net asset value per share amounted to HK$1.60.

During the Period under Review, the pre-sales of The Esplanade, the Group’s boutique residential project in Tuen Mun, achieved satisfactory results. A total of 364 residential units which is 98% of the residential units, and 3 car parking spaces, were pre-sold at aggregate amount of about HK$1,641.5 million. The construction of the project was completed and the occupation permit was obtained in January 2020. The handover of the flats to the end-buyers is expected in the third quarter of 2020.

In addition, the disposal of the office property in 10 Fenchurch Street, London UK (100% owned) was approved by shareholders and this will improve and strengthen the net cash position of the Group. As at 31 March 2020, the property was recorded at valuation of GBP96.5 million (equivalent to approximately HK$926.4 million). As announced on 3 May 2020, the Group entered into a sale and purchase agreement to dispose of this investment property to an independent third party at a consideration of about GBP94.2 million (equivalent to approximately HK$909.2 million), subject to adjustment, and the completion of the disposal is expected to be around the end of August 2020.

Mr. Albert Chuang Ka Pun, Chairman of Chuang’s China, stated “The global political and economic uncertainty, coupled with the effect of the Covid-19 pandemic continue to disrupt business prospects and confidence of investors. However, the Group believes the PRC will continue to promote structural economic transformation and maintain stable growth. The Guangdong-Hong Kong-Macao Greater Bay Area and Belt and Road Initiative will be the growth drivers for the PRC and create business opportunities for Hong Kong. In addition, the financial position of the Group would be greatly enhanced following the completion of the disposal of the property in London. Going forward, the Group will explore new development projects and investments properties to expand its scope of business and investment portfolio at an opportune time.”