Everbright Grand China Announces 2022 Annual Results

Mar 28, 2023 22:03 JST

Source: Everbright Grand China Assets Limited

Revenue Amounted to RMB52.3 million
Proposed a Final Dividend of HK2.17 Cents

HONG KONG, Mar 28, 2023 - (ACN Newswire) - Everbright Grand China Assets Limited ("Everbright Grand China" or the "Group"; HKEX stock code: 3699), a subsidiary of China Everbright Group, principally engaged in the businesses of property leasing, property management and sales of properties held for sale, announced its annual results ended 31 December 2022 ("Reporting Period").

For the year ended 31 December 2022, the Group recorded a revenue of RMB52.3 million, a slightly decrease of approximately 0.8% over the same period last year, and the profit attributable to equity shareholders of the Company amounted to RMB22.1 million, a decrease of approximately 32.4% over the same period last year, mainly due to the drop in the valuation gains on investment properties during the year. The basic earnings per share for the year ended 31 December 2022 was approximately RMB0.05 (2021: RMB0.07). The Board recommended the payment of a final dividend of RMB 1.90 cents (equivalent to HK2.17 cents) per ordinary share for the financial year ended 31 December 2022.

As at 31 December 2022, the Group had cash and bank balance of RMB214.9 million and a gearing ratio of 18.3%. The Company's healthy financial position and cash flow will strongly support the investments required for the Company's continued development.

Property Leasing
The rental income from the Group's property leasing business was approximately RMB38.3 million for the year ended 31 December 2022 (2021: RMB37.3 million). The slight rise in the average rent per square meters ("sq.m.") resulted in the increase in total rental income. As at 31 December 2022, the Group's property portfolio comprises three commercial buildings, namely Everbright Financial Center, part of Everbright International Mansion and Ming Chang Building, with a total gross floor area ("GFA") of approximately 89,507 (2021: 89,507) sq.m.

Property Management Service
Revenue from the Group's property management services was approximately RMB14.0 million for the year ended 31 December 2022 (2021: RMB15.4 million). The decrease in revenue from property management services was resulted from the decrease in occupancy rate during the year. The total GFA under the Group's management dropped 8.6% to approximately 59,413 sq.m. as at 31 December 2022 (2021: 65.037 sq.m.).

Investment Properties
As at 31 December 2022, the fair value of the investment properties was RMB954.1 million (2021: RMB953.7 million). The valuation gains on investment properties for the year ended 31 December 2022 amounted to approximately RMB0.1 million (2021: approximately RMB17.5 million), representing a decrease of approximately RMB17.4 million as compared to last year. The decrease indicated the property market in the PRC was affected by COVID-19 near the end of the reporting period.

Prospects
Under the influence of uncertainties, the Group's property leasing business was inevitably impacted, which resulted in a downward pressure on rental income from the properties. However, the Group has already started its deployment in 2021 and has acquired new tenants since this year. Benefiting from the synergy created from the China Everbright Group and the popularity of the "Everbright" brand, the Group is able to maintain a friendly long-term cooperation that is mutually beneficial and creates a win-win situation which contributes to the stable growth of its leasing business.

The property management industry in mainland China is still in its formative years, and on one hand, the Group's professional property management team continued to provide high-quality property management services for its projects to enhance the value of properties, and continued to actively identify properties with investment potential on the other hand, and it also continued to develop new value-added service business to broaden its service boundary and business scope.

For the plan to acquire new assets overseas, the Group will continue to prudently and closely review the market environment and the potential investment returns of various types of properties in order to formulate appropriate business development strategies, and will also determine the pace of acquisition of new assets in overseas markets in light of factors such as changes in market and macro environment factors, currency exchange rates and interest rate movements. In respect of the business expansion strategies in mainland China, the Group will continue to identify opportunities with good return potential in mainland China on one hand, and will seek for synergy with its parent company, China Everbright Group, to achieve a more efficient allocation of resources on the other hand.

Looking forward to 2023 there are still many uncertainties in global economy and business environment for enterprises. However, as all regions of China are gradually emerging from the shadow of the COVID-19 pandemic, the central government is also gradually relaxing its regulation on the property industry in an orderly manner and is actively promoting the improvement of operating cash flows of developers, resulting in signs of recovery in property sales in mainland China. At the same time, the state has launched a series of encouraging policies to support and promote the development of the property management industry, which resulted in a significant emphasis on the role of the industry in the country's development. The Group remains cautiously optimistic about the development of the property management industry in 2023.

About Everbright Grand China Assets Limited
Everbright Grand China Assets Limited, a subsidiary of China Everbright Group, principally engaged in the businesses of property leasing, property management and sales of properties held for sale, owns, leases and manages properties located in Chengdu, Sichuan province, and also owns and leases a property located in Kunming, Yunnan province. The properties are located in the city centers of Chengdu and Kunming, the key cities of western China. The property portfolio comprised three commercial properties, namely Everbright Financial Center, part of Everbright International Mansion and Ming Chang Building. For further details regarding to Everbright Grand China Assets Limited, please visit its website at https://ebgca.com.hk/.

Source: Everbright Grand China Assets Limited
Sectors: Daily Finance