Henderson Land Development (00012) announced its interim results as of the end of June this year
Profit attributable to shareholders was 7.515 billion yuan, down 50% year-on-year. The company also announced that it has sold a number of land parcels in Yuen Long and Siu Wai, New Territories, with a cash out of nearly $5 billion. It has also applied for land exchange for the three sites in the New Territories and has been accepted by the Government. The company’s share price fell slightly by 0.26% yesterday to close at 38.8 yuan.
Henderson announced the sale of certain land parcels in Yuen Long and Siu Wai, and cashed in at $4.7 billion. The picture shows Chairman Li Jiajie.
Excluding the changes in fair value of investment properties and development investment properties, the underlying profit attributable to shareholders was 6.702 billion yuan, a decrease of approximately 52% year-on-year, a basic earnings per share of 1.38 yuan, and an interim dividend of 50 cents, the same as the same period last year. The interim net profit of the same company Henderson Land (00097) was 21 million yuan, down 56% year-on-year, and 2 cents per share.
Henderson Land Interim Results
Most of the final sales report
The results announcement explained that the profit was regressed year-on-year. It was mainly due to the entire development project of Tuen Mun Guan Cui Road and the interest of the commercial floor of the Jinghua Road in North Point, which recorded a total profit contribution of about 8.389 billion yuan. There was no similar sale this year. The pre-tax profit attributable to property sales for the year decreased by 72% year-on-year to RMB 1.107 billion. Most of the property sales recorded in the current year are expected to be completed and delivered to buyers in the second half of the year, and the relevant earnings will be reflected in the final results.
During the period, the Group’s self-occupied Hong Kong property sales amounted to RMB 7.81 billion. The net pre-tax rental income increased by 1% year-on-year to 3.585 billion yuan. Based on its self-occupied floor area, the Group currently has a land bank of approximately 24.7 million square feet in Hong Kong. In addition, as of the end of June, it held approximately 45.9 million square feet of land in the New Territories.
The group also said that Sino-US trade disputes continued during the period, and the recent social conflicts continued to intensify, further dragging down economic performance. The impact is on industries such as tourism, retail and catering, as well as on the rental and value of the property. However, due to the strong demand for local household housing and the continued low mortgage interest rate, the property market has been supported. The Group will resume normal development as soon as possible and will closely monitor developments to assess risks and make contingency measures when necessary.
In addition, the Group entered into an agreement in July this year to sell and acquire a number of land interests to an independent third party for a total of RMB 4.705 billion. The total land area involved is approximately 2.42 million square meters. The transaction is scheduled to be completed in January 2000. .
According to the information, a land of about 2.234 million square feet of Henderson Land and Shengwei was approved by the Town Planning Board in the first half of the year. 400 buildings of 3 to 4 storeys can be built, including 1 basement and residential buildings. There are about 893,000 square meters, and there is another three-storey clubhouse with a basement.
Apply for the price of three plots in Fanling Gukdong
The Group also mentioned that there are 2.4 million cubic feet of land in the Fanling North New Development Zone. It is expected that more than 800,000 square feet of land will meet the land exchange conditions of the original site, and the rest may be recovered by the government for public use in cash compensation.
The three sites in Fanling North and Kwu Tung North have been re-applied to the Government for further processing. The three sites can provide a total of about 440 000 square metres of shopping mall floor and about 3 million square feet of residential floor. The relevant development area is subject to the completion of the land premium agreement.