HONG KONG, Nov 9, 2023 - (ACN Newswire) - Grand Ming Group Holdings Limited (the "Company" and together with its subsidiaries, the "Group", stock code: 1271.HK) today announces its interim results for the six months ended 30 September 2023 ("FH 2023/24").
Highlights
- Revenue amounted to HK$191.7 million, a decrease of 96.1% from the last corresponding period.
- Profit for the period was HK$111.1 million, representing a year-on-year decrease of 92.1%.
- Declared payment of an interim dividend of 4.0 HK cents per share.
- Strive to develop the two new data centres in Fanling.
- Remain cautious in exploring potential development projects.
The Group's consolidated revenue decreased by 96.1% from HK$4,920.1 million for the six months ended 30 September 2022 ("FH 2022/23") to HK$191.7 million for FH 2023/24. The Group recorded a net profit of HK$111.1 million for FH 2023/24, representing a decrease by 92.1% when compared to that of HK$1,410.2 million for FH 2022/23. Basic earnings per share was 7.8 HK cents (FH2022/23: 99.3 HK cents). The Group's underlying profit for FH 2023/24, excluding the effect of the change in fair value of investment properties, amounted to HK$1.30 million, representing a decrease of 99.9% as compared to an underlying profit of HK$1,414.3 million for FH 2022/23. These are primarily due to a substantial decrease in the number of properties sold from the property development projects during the period under review.
The Board declares to pay an interim dividend of 4.0 HK cents per share, payable on 20 December 2023 to shareholders whose names appear on the Company's register of members on 1 December 2023.
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 with total gross floor area of approximately 400,000 square feet. This project was well received by the market with over 94% of the units being sold.
The Group's another development project in the pipeline, located at No. 45 Pau Chung Street in To Kwa Wan, Kowloon is named "The Grands". The site is redeveloped into a 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 development has been completed and put up for pre-sale in June 2023. Approximately 56% of the units had been sold with contracted sales of approximately HK$210 million being achieved. Handover of the pre-sold units had commenced in October 2023 after the development was granted occupation permit in August 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. Foundation works is now completed and the project is target to be completed in mid-2025.
The site in North Point, Hong Kong, comprising a building at No. 66 Fort Street and a vacant land at No. 57 Kin Wah Street, was acquired by the Group in February 2023 and covers a site area of approximately 3,240 square feet with a developable gross floor area of approximately 30,000 square feet. It is planned to be redeveloped into a residential-cum-commercial project with target completion by 2027. Hoarding works for demolishing the existing building at Fort Street is underway.
The Group's luxury residential project, CRISTALLO, at No. 279 Prince Edward Road West, Kowloon was well sold. As of September 2023, 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 in July 2021. It is planned to be developed 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 include elderlies and retirees and their families. The estimated gross floor area of the proposed development is approximately 1,100,000 square feet. Basement and earthwork excavation is now underway.
The data centre leasing business maintains healthy growth. The Group currently owns two data centres, namely iTech Tower 1 and iTech Tower 2. Revenue from its leasing business recorded an increase of 17% year-on-year to HK$133.2 million. This was mainly driven by the increasing utilisation of data centre spaces by the customers. The two greenfield sites at No. 3 On Kui Street and No. 8 On Chuen Street in Fanling, the New Territories are being developed into two new high-tier data centres for leasing purposes, with a gross floor area of approximately 185,700 square feet in aggregate. The change of land use through land exchange for both sites have been completed in June 2023 with the land premium involved being fully settled. Superstructure works at No.3 On Kiu Street and foundation works at No.8 On Chuen Street is currently in progress. The development is scheduled to be completed in mid- 2025 and mid-2026 respectively.
For construction business, construction revenue derived from external customers amounted to HK$35.7 million, representing an increase of 20.1% as compared to that of FH 2022/23. As at 30 September 2023, the Group possessed contracts (inclusive of external customers and the Group's companies) with an aggregate value of approximately HK$2.1 billion.
Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings concluded, "The global and Hong Kong economic situation is expected to continue to present considerable turbulence. Notwithstanding the reopening of Hong Kong's border with the Mainland of China earlier this year and the lifting of outbreak control measures, the interest rate hiking environment, global inflation, geopolitical tensions and concerns over the economic growth of the Mainland of China have casted a shadow over Hong Kong's economic recovery. In such unfavourable market sentiments, we have succeeded in launching the sale of The Grands with a promising market response. We are committed to the sale of the remaining units in The Grands, as well as The Grand Marine and Cristallo. In the data centre business, we remain committed to providing reliable service and support to our customers. In addition, the Group has worked effortlessly to develop two new high-end data centres in Fanling to ensure that the two data centres will be completed and delivered on schedule. In the face of continued uncertainties and challenges, we will focus on strengthening our business operations and managing the Group's financial position. At the same time, we will remain prudent in exploring potential development projects that can bring sustainable growth to the Group."
About Grand Ming Group Holdings Limited (Stock code: 1271.HK)
The Group is principally engaged in the business of property development and property leasing, as well as building construction. 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 owns 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's property development projects for sale include "The Grand Marine" at No.18 Sai Shan Road, Tsing Yi, "The Grands" at No. 45 Pau Chung Street, To Kwa Wan and "Cristallo" at No. 279 Prince's Edward Road West. Besides, property development in progress includes a site located at No.1 Luen Fat Street, Fanling and a site located at No. 66 Fort Street and No. 57 Kin Wah Street, North Point. 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 under the theme of leisure and healthy lifestyle.
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