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(Incorporated in Bermuda with limited liability)

(Stock Code: 754)

website: http://www.irasia.com/listco/hk/hopson

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2019

FINANCIAL HIGHLIGHTS

(for the six months ended 30th June 2019)

  • Turnover was HK$7,222 million.
  • Profit attributable to equity holders was HK$2,655 million.
  • Basic earnings per share was HK$1.193 per share.
  • Interim dividends were HK$10 cents per share.

BUSINESS REVIEW

Industry overview

In the first half of 2019, the National Bureau of Statistics of China pointed out that the national economy operated within a reasonable range, sustaining the momentum of being generally stable with steady progress, with a year-on-year increase of 10.9% in the investment in real estate development nationwide. During the period, the Political Bureau of the CPC Central Committee reiterated the insistence on "housing is for living in, not for speculation", and the implementation of long-standing regulatory mechanism including "one city one policy", "different policies according to specific situation of different cities" and "accountability of local governments".

In response to the regulatory policies of the Central Government on the real estate market, the Group accelerated the sales of residential products targeting improvement demand and rigid demand based on each city's requirements under "one city one policy", and strived to move toward the Group's sales target. At the same time, the Group will also continue to optimise the tenant portfolio of the investment properties, while continuously enhancing the property management and brand business, so as to grasp the rising demand for high-end services in the domestic market, and to promote the Group's strategy on the balanced development of light and heavy assets.

* For identification purposes only

- 1 -

Contracted sales performance

Details of properties sold under sale and pre-sale contracts in the first half of 2019 totalling RMB10,369 million (2018: RMB6,235 million) are as follows:

  • In Guangzhou, a total GFA of 144,887 square metres (2018: 100,318 square metres) with a
    carrying value of RMB2,788 million (2018: RMB1,497 million) was sold. The increase in sales was mainly attributable to the newly launched units of Hopson Xijing Garden (合生熹景花園) and Hopson Belvedere Bay (合生君景灣), whose high-rise units continuously enjoyed good sales during the period, and the ample supply of units of Hopson Hushan Guoji Villa (合生湖山國際) enjoying substantial sales growth driven by policies.
  • In Shanghai, a total GFA of 406,840 square metres (2018: 231,041 square metres) with a
    carrying value of RMB4,949 million (2018: RMB2,713 million) was sold. The increase in sales was mainly attributable to the ample supply of The Town of Hangzhou Bay (合生杭州灣國際 新城) and Hopson Asset Seascape Residence (合生財富海景公館) enjoying good sales and increase in the area sold.
  • In Beijing and Tianjin, a total GFA of 106,965 square metres (2018: 58,884 square metres) with
    a carrying value of RMB1,317 million (2018: RMB1,104 million) was sold. The increase in sales was mainly attributable to the substantial increase in the area sold driven by the featured apartments of Hopson Dreams World (合生世界村) and the sale of the newly launched carpark spaces of Hopson Regal Park (合生濱江帝景).
  • In Huizhou, a total GFA of 127,490 square metres (2018: 96,189 square metres) with a carrying
    value of RMB1,315 million (2018: RMB921 million) was sold. The increase in sales was mainly attributable to the substantial increase in the area sold and unit price as compared to the same period of last year driven by the featured sales of houses of Hopson International New City (
    生國際新城).

Properties sold but yet to be delivered

As at 30th June 2019, the GFA in respect of which the Group had entered into sale and pre-sale contracts and yet to be delivered to buyers was 1,993,068 square metres (31st December 2018: 1,448,860 square metres). Following the delivery of these properties, the proceeds received therefrom totalling HK$16,409 million will be recognised as revenue in the Group's financial statements in the second half of 2019 and thereafter.

- 2 -

Delivery of properties

A total GFA of 241,974 square metres (2018: 155,421 square metres) was delivered in the first half of 2019.

Project development progress

  • A total GFA of approximately 687,512 square metres was completed in the first half of 2019.
  • A total GFA of approximately 1,216,999 square metres is expected to be completed in the second half of 2019.

Landbank

As of 30th June 2019, the Group had a landbank of 29.40 million square metres (31st December 2018: 29.22 million square metres).

Outlook

On 30th July 2019, a meeting was held by the Political Bureau of the CPC Central Committee to analyse and study the current economy and economic measures. The meeting reaffirmed the concept of "housing is for living in, not for speculation" and the implementation of "long-standing management mechanism for real estate". It is expected that the Central Committee will implement the measures of "one city one policy" and "different policies according to specific situation of different cities" in the second half of 2019, so as to resolutely guard against the risk of overheating in the real estate market.

Rooting on the clear positioning of "housing is for living in, not for speculation" and "the implementation of long-standing management mechanism for real estate", the Group will continue to leverage its competitive edges as usual. The Group will focus on its core assets, make innovations in business development, and through its diversified portfolio comprising residential properties, commercial properties, property management and infrastructure segments, enhance product quality and additional value, so as to improve the Group's competitiveness and bring in a higher level of income.

The board (the "Board") of directors (the "Directors") of Hopson Development Holdings Limited (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively the "Group") for the six months ended 30th June 2019 together with the comparative figures for the previous period.

The interim financial information of the Company for the six months ended 30th June 2019 has been reviewed by the Company's audit committee and the Board.

- 3 -

CONDENSED CONSOLIDATED INCOME STATEMENT

Six months ended

30th June

2019

2018

Note

HK$'000

HK$'000

(Unaudited)

(Unaudited)

Revenues

5

7,222,307

4,965,091

Cost of sales

7

(3,450,032)

(2,588,732)

Gross profit

3,772,275

2,376,359

Fair value gain on investment properties

1,385,215

2,076,730

Other gains, net

6

268,491

141,307

Selling and marketing expenses

7

(315,696)

(102,303)

General and administrative expenses

7

(768,660)

(752,637)

Finance income

8

180,856

133,228

Finance costs

8

(454,581)

(293,823)

Share of loss of associates

(3,109)

(65)

Share of profit of joint ventures

9

54,753

43,533

Profit before taxation

4,119,544

3,622,329

Taxation

10

(1,416,387)

(1,154,819)

Profit for the period

2,703,157

2,467,510

Attributable to:

Equity holders of the Company

2,654,976

2,473,415

Non-controlling interests

48,181

(5,905)

2,703,157

2,467,510

Earnings per share for profit attributable to equity holders

of the Company during the period

(in HK$ per share)

- basic and diluted

11

1.193

1.111

Dividends

12

222,556

445,112

- 4 -

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Six months ended

30th June

2019

2018

HK$'000

HK$'000

(Unaudited)

(Unaudited)

Profit for the period

2,703,157

2,467,510

Other comprehensive income/(loss)

Items that may be reclassified subsequently to profit or loss:

Assets revaluation reserve realised upon disposal of

completed properties held for sale

(53,230)

(17,023)

Deferred tax

24,660

6,418

Currency translation differences

(231,800)

(611,013)

Item that will not be reclassified subsequently to profit or loss:

Fair value loss on financial assets at fair value through other

comprehensive income

(318,770)

(316,579)

Deferred tax

80,872

79,145

Other comprehensive loss for the period, net of tax

(498,268)

(859,052)

Total comprehensive income for the period

2,204,889

1,608,458

Attributable to:

Equity holders of the Company

2,165,791

1,632,479

Non-controlling interests

39,098

(24,021)

2,204,889

1,608,458

- 5 -

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HKEx - Hong Kong Exchanges and Clearing Ltd. published this content on 21 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 August 2019 05:12:04 UTC