Grand Ming Group Holdings Limited Announces Annual Results for the Year Ended 31 March 2020

Jun 08, 2020 13:26 JST

Source: Grand Ming Group Holdings Limited

Revenue Increased by 47.1% to HK$902.6Million;
Profit for the year amounted to HK$33.8 Million;
Proposed Final Dividend of 4.0 HK Cents per Share;
And One Bonus Share for Every One Existing Share Held

HONG KONG, Jun 08, 2020 - (ACN Newswire) - Grand Ming Group Holdings Limited (the "Company" and together with its subsidiaries, the "Group", stock code: 1271.HK) today announces its annual results for the year ended 31 March 2020 ("FY 2019/20").

Highlights
- Revenue amounted to HK$902.6 million, an increase of 47.1% from the previous financial year.
- Net profit was HK$33.8 million, representing a decrease of 77.3%.
- Underlying profit decreased by 65.9% to HK$44.2 million, excluding the change in fair value of investment properties.
- Proposed payment of a final dividend of 4.0 HK cents per share.
- Proposed issue of bonus issue on the basis of one (1) bonus share for every one (1) existing share held
- Remains cautious in acquiring land and properties in face of economic uncertainty while striving to extend its market reach in prudent approach.

The Group's consolidated revenue increased 47.1% from HK$613.4 million for the year ended 31 March 2019 ("FY 2018/19") to HK$902.6 million for FY 2019/20. The increase was primarily driven by the revenue generated from a new building construction contract in Kai Tak and the sales of five units of Cristallo during the FY 2019/20.

The Group's underlying profit for FY 2019/20, excluding the change in fair value of investment properties, amounted to HK$44.2 million, representing a drop of 65.9% from HK$129.6 million in FY 2018/19. Underlying earnings per share was 6.2 HK cents (2019: 18.3 HK cents). The drop in the profit were mainly attributed to the increase in selling expenses derived from advertising and marketing expenses incurred in the sales campaign of the Grand Marine (a residential project under construction located at Tsing Yi), and increase in depreciation charges from the renovation and equipment in the sales office. Net profit for FY 2019/20 was HK$33.8 million, inclusive of an unrealised fair value loss on investment properties of approximately $10.3 million (2019: gain of $19.4 million), representing a decrease of 77.3% compared to that of HK$149.0 million for FY 2018/19. Basic earnings per share were 4.8 HK cents (2019: 21.0 HK cents).

It is the Group's policy to reward shareholders in participating the Group's profit. The Board now recommended to pay a final dividend for FY 2019/20 of 4.0 HK cents per share. Together with the interim dividend of 4.0 HK cents per share and special interim dividend of 50.0 HK cents per share, the total dividends for FY 2019/20 amounted to 58.0 HK cents per share. The Board also proposes issue of bonus shares on the basis of one bonus share for every one existing share held.

During FY 2019/20, revenue derived from the construction business increased by approximately 87.7% or HK$232.2 million, from approximately HK$264.9 million for FY 2018/19 to approximately HK$497.1 million for FY 2019/20. The increase was mainly attributable to a new construction project at Kai Tak, of which the contract was awarded in March 2019 and work commenced in May 2019.

For the data centre leasing business, the Group's two high-tier data centre buildings, namely iTech Tower 1 and iTech Tower 2, offered stable rental income to the Group. As at 31 March 2020, binding commitments have been secured on all the raised floor area space of iTech Tower 2. For FY 2019/20, revenue derived from this segment decreased by approximately 8.2% to approximately HK$139.8 million for FY 2019/20, primarily due to reduction of rental related income as a result of lower electricity consumption by the tenant of iTech Tower 1 during the year under review.

The Group's first property project at 18 Sai Shan Road, Tsing Yi, New Territories is now named "The Grand Marine". This project will provide 776 residential units in two towers, ranging from one-bedroom to four-bedroom and special units. The foundation works have been completed and the superstructure work will be proceeded immediately. The development is expected to be completed in late 2021. The project had received overwhelming response from the market since its presale was launched in November 2019, with over 83% of the residential units being sold and cumulative presale proceeds of approximately HK$4.0 billion being recorded as of the end of May 2020.

The Group's another luxury low-density residential development project, CRISTALLO, located at 279 Prince Edward Road West, Kowloon also sold well. During the year under review, sales and delivery of five apartments had been completed, and revenue of approximately HK$265.6 million was recognized accordingly. The Group also entered into eight provisional sales and purchase agreements in respect of sales of eight apartments with aggregate contract sum of approximately HK$405.7 million. Completions of these eight apartments are scheduled to take place from June 2020 to October 2021.

Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings concluded, "This year has been very challenging as Hong Kong's economy has been hit hard by local protests from mid 2019 as well as the Novel Coronavirus pandemic from the beginning of 2020. We expect the economic outlook in short and medium-term remain soft. Despite being cautious, the Group will not stop the pace in identifying suitable opportunities for land and properties acquisition to increase our land reserve. The success of the Grand Marine project had provided a solid foundation for the Group's future property development business. We also extend our market reach into Mainland China and start to seek suitable property development projects in Nanning City of Guangxi Province with an aim to broaden the Group's income stream. Meanwhile, we continue to invest and upgrade our existing infrastructure and facilities of our two data centres to cater for customers' needs, and look for new sites in the territory and elsewhere outside Hong Kong for setting up our third high-tier data centre. As for the construction business, the focus remains in existing construction projects. We adhere to our extremely prudent strategy in tendering new construction contracts as profit margins have been substantially undermined due to a drop in new residential projects and severe industry competition."

About Grand Ming Group Holdings Limited (Stock code: 1271.HK)
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. With more than 20 years of experience in the construction industry, the Group also provides building construction services as a main contractor, and is involved in residential property development projects with prominent local developers, as well as offering alteration, renovation and fitting-out services for existing buildings in Hong Kong. Furthermore, the Group owns a land in Sai Shan Road, Tsing Yi for developing a residential project now named "The Grand Marine" with gross floor area of 400,000 square feet, as well as a luxury residential project, Cristallo, at Prince Edward Road West, Kowloon.

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Source: Grand Ming Group Holdings Limited
Sectors: Daily Finance, Daily News