- Profit for the Period Significantly up 19.4 times Reaching HK$1.41 Billion
- Declared an Interim Dividend of 6.0 HK Cents per Share
Grand Ming Group Holdings Limited (the Company and together with its subsidiaries, the Group, HKG: 1271) today announces its interim results for the six months ended 30 September 2022 (FH 2022/23).
Highlights
- Revenue amounted to HK$4.92 billion, an increase of 7.4 times from the last corresponding period.
- Profit for the period was HK$1.41 billion, representing a year-on-year increase of 19.4 times.
- Declared payment of an interim dividend of 6.0 HK cents per share.
- Stay positive toward lucrative business of owning and operating data centres via expanding portfolio of developing two new centres in near future.
- Seize opportunity to increase land reserve for property development in Hong Kong.
- Continue to execute the plan for property development in Nanning, Guangxi Province, China.
The Group’s consolidated revenue increased by 7.4 times from HK$586.1 million for the six months ended 30 September 2021 (“FH 2021/22”) to HK$4,920.1 million for FH 2022/23. The Group recorded a net profit for FH 2022/23 was HK$1,410.2 million, representing an increase of 19.4 times when compared to that of HK$69.2 million for FH 2021/22. Earnings per share was 99.3 HK cents (2021: 4.9 HK cents). The Group’s underlying profit for FH 2022/23, excluding the change in fair value of investment properties, amounted to HK$1,414.3 million, representing an increase of 47.4 times as compared to an underlying profit of HK$29.2 million for FH 2021/22. Underlying earnings per share was 99.6 HK cents (2021: 2.1 HK cents).
The significant increase in the Group’s consolidated revenue and net profit in FH 2022/23 was primarily attributable to the handover of the pre-sold units of the residential project namely The Grand Marine to buyers during FH 2022/23.
The Board declares to pay an interim dividend of 6.0 HK cents (2021: 4.0 HK cents) per share, payable on 15 December 2022 to shareholders whose names appear on the Company’s register of members on 2 December 2022.
The Group’s first residential property development project “The Grand Marine” at Tsing Yi, the New Territories consisted of two residential towers with 776 residential units, together with car parks and clubhouse facilities. It provides a saleable area of approximately 345,000 square feet. The property’s pre-sale which began in November 2019 received applauding sentiment and over 92% of the residential units had been pre-sold. The certificate of compliance for The Grand Marine was obtained in March 2022. Handover of the pre-sold units to buyers subsequently commenced in April 2022, with revenue of HK$4.77 billion recognised during FH 2022/23.
The data centre leasing business was in good shape maintaining a healthy growth. Revenue derived from this segment increased by 23.9% to HK$113.9 million in FH 2022/23, primarily driven by the increased utilisation of data centre spaces by existing and new customers. The Group on the other hand executes the plan to expand the data centre network by developing the two greenfield sites at No.3 On Kiu Street and No.8 On Chuen Street in Fanling, the New Territories into two new high-tier data centres with an estimated gross floor area of approximately 185,000 square feet in aggregate. The development is targeted to be delivered in mid-2025 and mid-2026 respectively.
In FH 2022/23, revenue derived from the construction business decreased by 90.2% to HK$29.7 million, which recorded a significant drop due to substantial decrease in revenue recognized during the period under review from the completed construction project at Kai Tak.
The Group’s another development project in its heatmap, located at No. 41, 43 and 45 Pau Chung Street in To Kwa Wan, Kowloon is now named “The Grands”. The site is being redeveloped into a 25-storey residential tower with 76 units and clubhouse facilities over two levels of shops covering a total gross floor area of approximately 31,000 square feet. The topping-out of the superstructure works had been completed and the interior fitting-out works are currently in progress. Preparation works for the pre-sale are also commenced. The project is scheduled to be completed in the first half of 2023.
For the site at No.1 Luen Fat Street, Fanling, the New Territories, the Group plans to develop into a residential-cum-retail complex with a total gross floor area of approximately 36,000 square feet. The land exchange application to convert the use of land is under processing. Foundation works has started, and the development is scheduled to be completed in mid-2025. Upon completion of the redevelopment of the site, the completed properties will be sold to generate revenue for the Group.
The Group’s luxury residential project, CRISTALLO, at No. 279 Prince Edward Road West, Kowloon was well sold. As of September 2022, 15 units out of the total 18 units had been sold.
The Group expands into Mainland China via acquiring 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 574,000 square feet in July 2021. It is planned to develop the land into a luxury residential project under the theme of leisure and healthy lifestyle, comprising high-rise apartment units, villas, retail shops and a wellness centre. Target customers will be the elderly and retirees and their families. The estimated gross floor area of the proposed development is approximately 1,100,000 square feet. Site investigation had substantially been completed. Application for building plan approval is under preparation.
Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings concluded, “I am pleased to share that we have made a strong growth and achieved a record-high revenue and net profit from our right strategy of making the Group to be a property developer, despite the challenging global environment with persistent pandemic impact, interest rate hike and high inflation. Demand for our both development property and data centre portfolio remain resilient, and our brand is well oriented to capture growth opportunities. In the midst of uncertain economic outlook, we remain cautiously optimistic on the short term and confident on the long-term prospects of the local residential property market. We will keep on identifying and securing opportunities to increase land bank on the backdrop of our sound financial position. We also commit to providing comprehensive and reliable services to our data centre customers. Apart from upgrading the existing iTech Tower 1 & 2, the two new data centres in Fanling are designed and to be equipped to accommodate customers with high power requirement. Our new strategic direction of developing property in Mainland China will continue to leverage our distinctive operating capabilities and seasoned experience to seize the attractive growth opportunities.”
About Grand Ming Group Holdings Limited (HKG: 1271)
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 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 No.18 Sai Shan Road, Tsing Yi, as well as a luxury residential project, Cristallo, at No.279 Prince Edward Road West, Kowloon. A new residential-cum-retail development project namely “The Grands”, which is located at No. 41, 43 and 45 Pau Chung Street, To Kwa Wan, Kowloon with a total gross floor area of approximately 31,000 square feet, is well underway and scheduled to be completed in mid-2023. Besides, a site located at No.1 Luen Fat Street, Fanling, New Territories, is planned to develop into a residential-cum-commercial project with total gross floor area of approximately 36,000 square feet and target completion at mid-2025. In Mainland China the Group owns a piece of land at Guangxi-ASEAN Economic and Technological Development Zone, Wuming District, Nanning City, Guangxi Province for development into a luxury residential project comprising high-rise apartments, villas, retail shops and wellness centre with an estimated gross floor area of approximately 1,100,000 square feet.
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Angel Yeung
Jovian Communications Ltd
Email: news@joviancomm.com