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China VAST 2016 Interim Revenue Surges 341%, Profit Attributable to Owners of the Company Increases 11.1%
About to Launch the Shijiazhuang International General Aviation Convention;
China VAST Actively tap into the General Aviation Industrial Towns to Broaden its Income Source
HONG KONG, Aug 30, 2016 - (ACN Newswire) - The pioneer integrated service developer in planning, investment development and operation of large-scale industrial towns in China - China VAST Industrial Urban Development Company Limited ("China VAST" or the "Group", Stock code: 6166), announced its unaudited interim results for the six months ended 30 June 2016.
- Revenue amounted to RMB1,255.3 million, a surge of 314.0%
- Gross profit amounted to RMB475.2 million, an increase of 406.4%; Gross profit margin increased to 37.9%, compared with 30.9% for the same period in 2015
- Profit before tax amounted to RMB295.8 million, an increase of 15.7%; Profit attributable to owners of the Company increased by 11.1% to RMB203.5 million
- About to launch Shijiazhuang General Aviation Convention on 13 September, the Group will actively tap into the general aviation industrial towns to broaden its income source
- Focus on the development of Longhe Park and projects located in Beijing-Tianjin-Hebei area as well as intend to commence construction of three projects in the second half of 2016, namely Shangshi Jiahua, Tanghai Project and Qingnianhui.
Revenue of the Group for the six months ended 30 June 2016 amounted to RMB1,255.3 million, representing an increase of 314.0% compared with the total revenue of RMB303.2 million for the same period in 2015. During the period, benefiting from the increase of sale of the land development with higher gross profit margin, gross profit increased by 406.4%, amounted to RMB475.2 million. Gross profit margin increased to 37.9% compared with 30.9% for the same period in 2015. Profit attributable to owners of the Company increased by 11.1% from RMB183.2 million for the six months ended 30 June 2015 to RMB203.5 million for six months ended 30 June 2016, which was primarily due to the growth both in the fee income from the sales of land development and in the sales of properties.
The basic earnings per share for the six months ended 30 June 2016 was RMB0.12 (2015 interim: RMB0.11). The diluted earnings per share was RMB0.12 (2015 interim: N/A).
The Board has resolved not to declare any interim dividend for the six month period ended 30 June 2016.
Mr. Wang Jianjun, the Board Chairman of China VAST, said, "In recent years, by proactively seizing the opportunities bred by the grand strategies such as the Beijing-Tianjin-Hebei Coordinated Development and Yangtze River Delta Economic Zone Development, the Group has added two industrial town projects in Luancheng District, Shijiazhuang and Ezhou Economic Development Zone, Hubei. The Shijiazhuang General Aviation Convention is about to launch and the international aviation engineering center in which we have invested RMB330 million will be unveiled at the aviation exhibition to be held in mid-September. It shows the Group's keen initiative to expand into the aerospace industry and its determination and enthusiasm to transform and upgrade its business. Taking advantage of the aviation exhibition, we will strive to build our corporate image, open new room for development in the industry and facilitate adjustment and perfection of the province's aerospace industrial chain. Our ultimate aim is to become the top brand in aviation industrial town development in the Beijing-Tianjin-Hebei region as well as across China."
BUSINESS REVIEW
Industrial Town Development
China VAST currently provides planning, development and/or operation services in seven industrial town projects, consisting of (i) Longhe Park; (ii) Longhe Resort; (iii) Guangyang Technology Park, all of which are located in Langfang, Hebei province; (iv) VAST Zhangjiakou City New Industrial Park in Zhangjiakou City, Hebei Province; (v) Shijiazhuang General Aviation Industrial Town Park in Shijiazhuang City, Hebei Province; (vi) Chuzhou Park in Chuzhou, Anhui Province; and (vii) VAST Ezhou Industrial Park in Ezhou City, Hubei Province. Longhe Park is under rapid development. The remaining six projects are in the early stage of development, and the Group has entered into legally binding cooperation agreements with the local governments for the development of each of these projects. It is expected that the existing industrial town projects to continue to generate land parcels for sale until 2035.
For the six months ended 30 June 2016, the Group recorded fee income of RMB262.1 million from land development for sale in Longhe Park. An aggregate of 30,015 sq.m. of land in Longhe Park was sold by the relevant local government for a total land premium of RMB54.8 million. In addition, VAST Ezhou Industrial Park and Shijiazhuang General Aviation Industrial Town Park also generated RMB45.0 million and RMB229.4 million income to the Group respectively. For the VAST project at Yanghe-River New Town of Zhangjiakou Economic Development Zone, income of RMB 55.5 million was recorded.
The Group recorded fee income from the sales of land development for sale of RMB592.0 million for the six months ended 30 June 2016, representing an increase of RMB544.8 million compared with RMB47.2 million for the six months ended 30 June 2015.
Property Development
The Group recorded revenue from the sales of properties of RMB655.6 million for the six months ended 30 June 2016, (2015: RMB252.4 million), which was mainly attributed to the increased area of property delivered. Gross floor area ("GFA") sold totaled to 93,087 sq.m., and average selling price ("ASP") totaled to RMB7,000/ sq.m.. The significant increase in revenue was primarily due to the delivery of residential and commercial properties of Hongtai Meishuguan Phase I covering 17,342 sq.m.; residential properties of Hongtai Meishuguan Phase II covering 24,411 sq.m.; residential and commercial properties of Hongtai Longdi Phase I and II covering 8,186 sq.m. and 36,673 sq.m. respectively; as well as the residential and commercial properties of Yulong Bay Phase I covering 6,414 sq.m..
As of 30 June 2016, the Group had 28 projects at various stages of development, mainly concentrating on development of residential, commercial and industrial projects with a wide range of products including residence, apartment, villa, retail stores and office buildings. The Group had land reserves of gross floor area of 2,005,500 sq.m. as at 30 June 2016.
Looking ahead, in respect of the industrial town projects development, the Group will focus on the development of Longhe Park and commence foundation works in respect of projects located in Beijing-Tianjin-Hebei area in the second half of 2016. The Group has confidence in executing this year's development plan and revenue proposal as laid out by the management at the beginning of the year. In respect of its property development, the Group intends to commence construction of three projects in the second half of 2016, namely Shangshi Jiahua, Tanghai Project and Qingnianhui. Revenue from sales of properties during the second half of 2016 is expected to derive mainly from sales carried forward from four projects including Hongtai Longdi, Hongtai Meishuguan, Yulong Bay and Electronic Information Industrial Park.
Mr. Wang concluded, "At our tireless effort, China Vast achieved satisfactory results in the first half of the year. By consistently expanding our industrial town projects and boasting economy of scale advantages, the Group is now officially on the fast track of growth. Looking forward, we will continue our exertion at Longhe Park, cement our footing in Langfang. At the same time, we will take the advantage of the opportunities presented by the Beijing-Tianjin-Hebei Coordinated Development initiative to boost our competitive strengths and consolidate our position as the first mover among leading providers of industrial town planning, investment and development, and operation services in China. Our goal is to increase profits and bring higher returns to shareholders."
China VAST Industrial Urban Development Company Limited (Stock code: 6166)
Founded in June 1995, China VAST Industrial Urban Development Company Limited is one of the pioneer providers in the planning, development and operation of large-scale industrial town projects. Riding on its experience in property development accumulated in the initial stage, China VAST Development was transformed into a pioneer in new urbanization construction in 2005. The Company has been committed to develop largescale industrial town projects in the strategic planning areas under the integration of Beijing-Tianjin-Hebei coordinated development and the Yangtze River Delta Economic Zone development, demonstrating its four comparative advantages including: unique abilities in industrial town planning, designing & positioning, abilities in infrastructure investment and construction, abilities in marketing & promotion, and related auxiliary facilities for logistics, residential & commercial properties.
Through cooperation with local governments under long-term agreements, unlike other ordinary property developers, industrial towns are designed to provide a wide spectrum of comprehensive and professional services for regional industrial development and development in towns, including planning and design, industry positioning, land preparation, infrastructure construction, marketing and promotion and related auxiliary facilities for logistics, residential and commercial properties.
Currently, China VAST Development is working together with local government of Langfang, Zhangjiakou and Shijiazhuang of Hebei province, Chuzhou, Anhui province and Ezhou, Hubei province in respect of development of 7 industrial town projects with project planning areas of approximately 90 sq. km. Focusing on the optimization of infrastructures in the abovementioned regions, transformation of industry and construction of urbanization as well as building and realizing fully integration of working and living communities for its residents, China VAST Development will spare no effort to become a leading integrated developer and operator of industrial town in China.
Source: China VAST Industrial Urban Development Co. Ltd
Sectors: Daily Finance, Daily News
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