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Grand Ming Group Announces FY2016 Annual Results
Profit for the Year Increased by 22.6% to HK$401.9 million
HONG KONG, Jun 03, 2016 - (ACN Newswire) - Grand Ming Group Holdings Ltd (the "Company" and together with its subsidiaries, the "Group", HKSE:1271) today announced its annual results for year ended 31 March 2016 ("FY 2016").
- The Group's total revenue for the year ended 31 March 2016 ("FY 2016") was approximately HK$967.6 million, increased by approximately 14.3%
- Net profit reached approximately HK$401.9 million for FY 2016. By excluding the increase in fair value of investment properties, the Group recorded an adjusted profit for the year of approximately HK$116.7 million in FY 2016, increased of approximately 0.55%
- On 31 May 2016, the Group had successfully tendered for a government land situated at Tsing Yi Town Lot No. 190, Sai Shan Road, Tsing Yi, New Territories at a premium of HK$938.88 million. The land parcel will be used for residential and commercial development and the total investment cost is estimated to be HK$3.3 billion
- The Board of Directors ("Board") recommends payment of a final dividend of HK4.0 cents per share for FY 2016
- A bonus issue of shares on the basis of one bonus share for every ten existing shares held is proposed
The Group's total revenue for FY 2016 was approximately HK$967.6 million, representing an increase of approximately 14.3% or HK$121.4 million from approximately HK$846.2 million for the year ended 31 March 2015 ("FY 2015"). The increase in revenue was mainly attributed to a construction project at Tseung Kwan O for which construction work commenced in August 2014 and was in full swing during the year.
The Group recorded a net profit of approximately HK$401.9 million for FY 2016 (FY 2015: approximately HK$327.8 million), representing an increase of approximately 22.6%. Excluding the increase in fair value of investment properties, the Group recorded an adjusted profit for the year of approximately HK$116.7 million in FY 2016 (FY2015: approximately HK$116.1 million), representing an increase of approximately 0.55% or HK$0.6 million.
The Board recommends to pay a final dividend of HK4.0 cents per share, together with the interim dividend of HK4.0 cents per share already paid, the total dividend for FY 2016 will amount to HK8.0 cents per share, representing a payout ratio of approximately 38.4%. The Board also proposes a bonus issue of shares on the basis of one (1) bonus share for every ten (10) existing shares held.
During FY 2016, the Group had secured two new construction contracts of proposed residential development in Kau To Shan, Shatin and Kai Tak, Kowloon with an aggregate contract sum of approximately HK$2.16 billion. As at 31 March 2016, the Group's gross contract value on hand was approximately HK$2.85 billion.
The Group's second high-tier data centre, namely iTech Tower 2, is situated in Kwai Chung and provides raised floor area of approximately 45,000 square feet. iTech Tower 2 is designed and built for the requirement of high-tier data centre and is capable of customization based on customer's specific requirement. Currently the Group is responding to specification request from potential customers and negotiating with them on the detail terms of the lease arrangement.
On 31 May 2016, the Group had successfully tendered for a government land situated at Tsing Yi Town Lot No. 190, Sai Shan Road, Tsing Yi, New Territories at a premium of HK$938.88 million. The land parcel will be used for residential and commercial development and the total investment cost is estimated to be HK$3.3 billion.
Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings said, "We witnessed another year of impressive financial achievements for the Company, both our construction business and data centre premises leasing business have recorded increased revenue. Looking forward, the construction industry is expected to remain steady in the medium term. Yet supply of the workforce and materials for construction industry are forecast to rise. This will drive down the construction cost but the gross margin of construction contracts may simultaneously be eroded. Although this does not pose any adverse effect on the Group's existing order books, the Group will pursue prudently when bidding upcoming construction contracts to ensure a reasonable gross margin.
For data centre business, the recent demand for high-tier data centres is driven by cloud, digital media and content. On the other hand, there will be an increase in data centre space in the coming two years, in particular from Tseung Kwan O. The Group will closely monitor the market condition and cautiously consider development of a third high tier data centre either in Hong Kong or Mainland China.
Furthermore, the recent acquisition of the government land at Sai Shan Road, Tsing Yi signifies the first development project undertaken by the Group and the first step to the Group's business into the property development business by leveraging its expertise in the building construction and property development knowledge. We believe that property development activity will bring the Group to an enhanced revenue generating portfolio. As a result, the Group will keep on participating in the tendering of sales of Hong Kong Government land either on our own or through joint venture with other property developers."
Contact:Angel Yeung
Jovian Communications Ltd
Tel：+852 2581 0168
Fax：+852 2854 2012
Email：news@joviancomm.com
Source: Grand Ming Group Holdings Limited
Sectors: Daily News
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