(Hong Kong, 29 June 2020) – Chuang’s Consortium International Limited (“Chuang’s Consortium” or “the Group”) (HKSE: 0367) announced its annual results for the year ended 31 March 2020 (“the Year under Review”).
With the ongoing Sino-US trade war and the social unrest in Hong Kong since 2019, together with the COVID-19 pandemic, the annual results of the Group for the year ended 31 March 2020 have been adversely affected. During the Year under Review, the Group’s loss attributable to equity holders of the Company amounted to HK$705.1 million (2019: profit attributable to equity holders of the Company was HK$1,226.6 million), in which about HK$458.1 million was the fair value loss of investment properties.
Despite the loss, the Group has achieved satisfactory performance for some projects in the Year under Review. For the sale of The Esplanade, 364 units have been presold out of the total 371 residential units, with only 7 units left. All residential units have been presold at an average price close to HK$17,000 per sq.ft. The aggregate sales value of the presold residential units and 3 carparking spaces amounted to about HK$1,641.5 million, and approximately HK$1,552.5 million sales deposits have been received.
The construction works of The Esplanade have been completed with occupation permit obtained in January 2020, and it is now close to the final stage to obtain the certificate of compliance in order to handover the units to end-users for completion.
For the redevelopment project at Gage Street, the Group has already acquired full ownership of No.20 Gage Street, and about 94.4% and 87.5% ownership of No.16 and No.18 Gage Street respectively, and with remaining 3 units to be acquired. The application for the compulsory acquisition of Nos. 16-18 Gage Street had been made in March 2019 and was approved in May 2020, and auction will be carried out in mid-July 2020. It is expected that the whole process of the compulsory acquisition will be completed within the financial year ending 31 March 2021.
In addition, the Group has successfully entered into an agreement to realize the investment property in the United Kingdom for approximately HK$909.2 million. The transaction is expected to be completed around the end of August 2020. The disposal represented a good opportunity for the Group to unlock asset value and enhance its cash position and deployment of resources.
Mr. Albert Chuang Ka Pun, Chairman and Managing Director of Chuang’s Consortium, stated “Going forward, we will closely monitor the progress for the completion of the disposal of the UK investment property and collect the remaining sale proceeds. Meanwhile, we will continue to monitor the progress of the construction works of various projects, especially for the issuance of the certificate of compliance of The Esplanade, and constantly review and monitor the tenant status and tenant mix of our investment projects, in particular under the current market environment so as to preserve the Group’s competitiveness.”