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Revenue Surges Nearly Doubling, Gross Profit Jumps 37.9% and Profit Before Tax Up 16.5%, Dividend Payout Ratio Reaches 28.0%;
Plans to Add 1 or 2 Industrial Town Projects To Further Broaden the Sources of Income |
HONG KONG, Mar 29, 2015 - (ACN Newswire) - The pioneer service provider 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 annual results for the year ended 31 December 2014.
- Revenue amounted to RMB2,391.2 million, an increase of 97.1%
- Gross profit amounted to RMB1,128.1 million, an increase of 37.9%
- Profit before tax amounted to RMB931.6 million, an increase of 16.5%
- Recorded fee income from the land development for sale of RMB1,046.3 million, an increase of 2.0%
- Recorded revenue from the sales of properties of RMB1,332.0 million, an increase of 6.5 times
For the year ended 31 December 2014, the revenue of the Group amounted to RMB2,391.2 million, representing an increase of 97.1% compared with the total revenue of RMB1,212.9 million in 2013. Gross profit amounted to RMB1,128.1 million, an increase of 37.9% compared with RMB818.2 million in 2013. Profit before tax increased by 16.5% to RMB931.6 million, from RMB799.5 million for the same period in 2013. Profit attributable to owners of the Company decreased slightly by 8.2% to RMB700.6 million from RMB763.5 million in 2013, primarily due to the increase in finance cost and a significant increase in income tax expenses during the period as a result of the adoption of the actual taxation method by three subsidiaries of the Group in 2014.
Calculating based on weighted-average number of 1,398,854,000 shares in issue as at 31 December 2014, the basic earnings per share for the year ended 31 December 2014 was RMB0.50 (2013: RMB0.60).
The Board has proposed the payment of a final dividend of HK15 cents per share (representing RMB0.12 per share) to the shareholders of the Company for the year ended 31 December 2014.
Mr. Wang Jianjun, Chairman of China VAST, said, "China VAST has been moving towards a new milestone in 2014. The Group's shares were listed on the Hong Kong Stock Exchange on 25 August 2014, graphic testimony to the Group's remarkable growth. The listing not only enhances the Group's corporate governance and reputation, but also provided sufficient capital so as to accelerate the growth of its industrial town development business continuously. Our distinctive business model fits perfectly into two national strategies, including the new urbanization model and Beijing-Tianjin-Hebei integration and development plan, making the Group the beneficiary of national strategy, as well as the latest star under the urbanization concept, hence, the management is full of confidence in China VAST's future."
BUSINESS REVIEW
Industrial Town Development
China VAST currently provides planning, development and/or operation services in five industrial town projects, consisting of (i) Longhe Park, (ii) Longhe Resort and (iii) Guangyang Park in Langfang, Hebei province, (iv) VAST Zhangjiakou City New Industrial Park in Zhangjiakou City, Hebei Province and (v) Chuzhou Park in Chuzhou, Anhui province.
Longhe Park is progressing towards an active development stage. For the year ended 31 December 2014, an aggregate of 610,171 sq.m. of land in Longhe Park was sold by the relevant local government for a total land premium of RMB1,627.1 million. Compared to the aggregate of 735,418 sq.m. of land sold, for a total land premium of RMB1,565.3 million in 2013, the Group has benefited from the increase in average selling price of land parcels. The Group recorded fee income from the land development for sale of RMB1,046.3 million for the year ended 31 December 2014, representing a slight increase of 2.0% as compared with RMB1, 025.4 million for the year ended 31 December 2013.
The remaining four projects are in the early stage of development, and the Group has entered into legally binding co-operation agreements with the local governments for the development of each of these projects. The Group expects the existing industrial town projects to generate land parcels for sale sustainably until 2035.
Property Development
The Group recorded revenue from the sales of properties of RMB1,332.0 million for the year ended 31 December 2014, an increase of 6.5 times compared with the same period in 2013. The significant increase in revenue was primarily due to the delivery of commercial and residential properties of the project Hongtai Longdi Phase I covering 105,154 sq.m., Hongtai Meishuguan Phase I and Phase II covering 54,607 sq.m., Yulong Bay Phase I covering 76,524 sq.m. and sales of the properties project of Information Electronic Industrial Park in Longhe Park Phase I covering 10,799 sq.m..
As for development of industrial town projects in 2015, the Group will remain focused on the development of Longhe Park and commence the elementary works in respect of Zhangjiakou project. For property development, the Group intends to commence construction of five projects, namely Shangshi Jiahua, Phase II of Yulong Bay, Foxconn City Phase II, Foxconn Technology Complex and Qingnianhui. Revenue from sales of properties during 2015 is expected to be mainly derived from four projects including Hongtai Longdi, Hongtai Meishuguan, Yulong Bay and Electronic Information Industrial Park.
Mr. Wang concluded, "The Group will adhere to the development strategies to continuously develop Longhe with a base in Langfang, and seize opportunities provided by the Beijing-Tianjin-Hebei collaboration and the New Beijing Capital Airport. We will also actively explore the development along the economic zone of Chengyu, Guantian, Wanjiang and the Yangtze River, further enlarging the scale of the industrial town development. Through organic expansion and acquisition, we will add one or two more industrial town development projects, while reserving a number of potential projects, in order to strive for a new growth point for the Group."
Contact:
Strategic Financial Relations Limited
Brenda Chan +852 2864 4833 brenda.chan@sprg.com.hk
Kate Chan +852 2864 4806 kate.chan@sprg.com.hk
Angel Li +852 2864 4859 angelok.li@sprg.com.hk
www.sprg.com.hk
Topic: Press release summary
Source: China VAST Industrial Urban Development Co. Ltd
Sectors: Daily Finance
http://www.acnnewswire.com
From the Asia Corporate News Network
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