To Business Editor Date: 30 August 2018
China VAST Reports Significant Business Growth In 2018 H1
Net Profit Increased by 57.4% YOY
China VAST Industrial Urban Development Company Limited ("China VAST" or the "Company", stock code: 6166; together with its subsidiaries, the "Group") reported that its revenue for the six months ended 30 June 2018 (the "Period") amounted to RMB2,463,841,000, representing a year-on-year increase of 76.1 per cent. The Group's profit for the Period amounted to RMB775,655,000, representing a year-on-year increase of 57.4 per cent. Basic earnings per share were RMB0.47 (2017: RMB 0.30).
During the Period under review, the Group's gross profit surged by 58.8 per cent year-on-year to RMB1,464,605,000, with a gross profit margin of 59.4 per cent.
During the Period, the land development business of China VAST generated a revenue of RMB1,345,600,000, representing a year-on-year increase of 4.6 per cent and accounting for 54.6 per cent of the Group's total revenue. The revenue from the Group's sales of properties for the Period amounted to RMB1,096,961,000, representing a year-on-year increase of 1029.2 per cent and accounting for 44.5 per cent of the total revenue. As to the Group's property leasing business, the revenue for the Period amounted to RMB21,280,000, representing a year-on-year increase of 37.1 per cent and 0.9 per cent of total revenue. During the Period under review, the increase in the Group's total revenue was mainly due to the delivery upon the completion of a property project for sale.
During the Period, the Group collaborated with local governments on the development of industrial town projects. At present, the Group currently provides planning, development and/or operation services in 10 industrial town projects located in Langfang City of Hebei Province, Zhangjiakou City of Hebei Province, Shijiazhuang City of Hebei Province, Chuzhou City of Anhui Province and Ezhou City of Hubei Province. The 10 industrial town projects include Longhe Park, Shijiazhuang General Aviation Industrial Town Park, Shijiazhuang Gaocheng VAST Industrial Town Park and VAST Ezhou Industrial Park. After over 10 years of development, Longhe Park is progressing towards its maturity in a fast development stage. The remaining nine projects are in the early stage of planning and development. However, with the improvement and betterment of the terms of cooperation agreements signed between China VAST and local governments, some of the cooperation agreements enable the Group to record revenue in the early stage of development, thus providing support for development projects on a rolling basis. During the Period, there were already four industrial town projects recording revenue.
During the Period, the Group obtained revenue from land sold by the local government and from land development projects in Longhe Park in Langfang City. In addition, the Group also obtained revenue from land development projects in other parks, including Shijiazhuang General Aviation Industrial Town Park, Shijiazhuang Gaocheng VAST Industrial Town Park, and VAST Ezhou Industrial Park.
Wang Jianjun, the chairman of the Group, said: "In respect of the Group's industrial town project development, the Group will focus on the development of Longhe Park and the foundation works of projects in Beijing-Tianjin-Hebei Region during the second half of 2018. The Group is confident in completing the development plan for the full year and revenue target as set out by the Company at the beginning of the year. In respect of property development, the Group intends to commence the construction of Foxconn City Phase III during the second half of 2018. Revenue from sales of properties in the second half of 2018 is expected to be derived mainly from the sales carried forward from Foxconn City Phase II."
About China Vast
Founded in 1995, China VAST Industrial Urban Development Company Limited is a pioneer in developing new industrial towns and implementing industrial park PPP model in China. Became listed on the Stock Exchange of Hong Kong Limited in 2014 (stock code: 6166), the Company is a comprehensive industrial town developer, with a key emphasis on industrial upgrading, park operation and infrastructure investment.
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Issued by: China VAST Industrial Urban Development Company Limited
Through: CorporateLink Limited
Media Enquiries: CorporateLink Limited
||Tel: 2801 6090 / 6173 9039
||Tel: 2801 6045 / 6435 8558
(Attached is a summary of China VAST's unaudited condensed consolidated statement of profit or loss and other comprehensive income for the six months ended 30 June 2018)
China VAST Industrial Urban Development Company Limited
(Stock Code: 6166)
Summary of Condensed Consolidated Statement of Profit or Loss and
Other Comprehensive Income
For the six months ended 30 June 2018
||For the six months ended 30 June 2018
|Cost of sales and services
|Profit before tax
|Income tax expense
|Profit for the Period
|Profit for the Period attributable to:
|Owners of the Company
|Earnings per share
30/08/2018 Dissemination of a Marketing Press Release, transmitted by EQS Group.
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