CCMGT (9982.HK) Announces 2021 Interim Results, Revenue Increased 32%, Dividend Payout Ratio Reached 65%

Monday, 16 August 2021, 22:47 HKT/SGT

Deploy Greater Central China Strategy as The Foundation, Develop Major Cities and Counties Outside the Province

HONG KONG, Aug 16, 2021 - (ACN Newswire) - CENTRAL CHINA MANAGEMENT COMPANY LIMITED ("CCMGT" or the "Company", stock code: 9982.HK), a leading property project management company in China, today announces its unaudited interim results ended 30 June 2021("Review Period"). During the Review Period, benefited from the PRC domestic property sector continued to recover and the Greater Central China strategy of the Company, the revenue of the Company increased 32% to approximately RMB635 million as compared to the same period of 2020. Net profit amounted to approximately RMB362 million, representing an increase of 20% as compared with the same period last year. Core net profit amounted to RMB380 million, an increase of 25.6% as compared to the same period of 2020. The earnings per share increased 17.8% to RMB0.12 cents. The Board of Directors declared an interim dividend of HK8.60 cents per share for the six months ended 30 June 2021.

During the first half of 2021, the world economy gradually recovered owing to the improved global COVID-19 situation. The Chinese economy is on a solid recovery track. During the Review Period, CCMGT owned 250 projects under management and had been present in 116 cities and counties, namely 99 cities and counties in Henan and 17 cities and counties in other 6 provinces. The projects cover Henan, Anhui, Shanxi, Shaanxi, Hebei, Xinjiang, and Hainan. During the Review Period, the Company owned GFA under management of 30.085 million sq.m., an increase of 25.2% as compared to the corresponding period of 2020. Among the projects, 52 project management contracts were signed with a newly contracted GFA of 5.734 million sq.m., a year-on-year increase of 21.5%, which included the projects under management were those in provinces other than Henan with GFA of 2.25 million sq.m., an increase of 145.0% as compared to the corresponding period of 2020.

As the parent company Jianye Group continued to improve its comprehensive capabilities, expand its brand influence, consolidates of its base areas in Henan and constant enhancement of the confidence of its team, and meanwhile launched the "Greater Central China" strategy under its provincial development and new blue ocean strategies. CCMGT, as one of the pioneers in implementing Jianye Group's Greater Central China strategy, actively promoted project investment and expansion in "Greater Central China" region.

During the Review Period, the Company was dedicated to open up projects in Henan province. The revenue from projects in Henan province amounted to approximately RMB 596 million, a year-on-year increase of 26.5%. The revenue from projects outside Henan province amounted to approximately RMB 38.63 million, a year-on-year increase of 307.8%.

Mr. Wu Po Sum, Chairman and non-executive Director of CENTRAL CHINA MANAGEMENT COMPANY LIMITED, said, "CCMGT enjoyed not only its own development advantages, but the fact that the Chinese economy is on a solid recovery track also steady and sound growth momentum in China's economy. As an inland open highland, Henan Province saw continuous improvement of its advantages as an integrated transportation hub and vigorous industrial transformation and upgrading. The urban agglomeration in central China promoted the integrated development of urban and rural areas and released huge market demands. On the other hand, thanks to changes in the policy environment and trends of the real estate market, the project management market offers abundant opportunities."

China's GDP increased by 12.7% year-on-year during the first half of 2021 and is forecasted by the World Bank to grow 8.5% throughout the year. This creates a positive, favourable environment for businesses to grow.

On 27 May 2021, the first China Project Management Value Summit released the Blue Paper for the Project Management Industry, which expected that the penetration of the project management industry will reach 4.8% in 2021. Compared to US and Europe project management industry penetration of 20% to 30%, China's project management industry penetration has room to further grow up to 5.2 times. Thus, there's enough room for competition and the prospect for development in future is promising.

Looking ahead, Mr. Wu Po Sum said, "With the increasingly widening of industry sectors and release of the industry's potential for continuous growth, the Company will centre on products and services and steadily push forward a refined full process project management system. In the era of management dividends, the Group will build its core competitiveness and promote its transformation into a leading project management company."

Topic: Press release summary Sectors: Real Estate & REIT
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