Greenland Hong Kong's Core Net Profit* Surged 267% to RMB213 million in 1H 2018

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Thursday, 30 August 2018, 09:45 HKT/SGT

Possessing huge land bank ensures sustainable development
Exploring strategic cooperation for mutual benefits

HONG KONG, Aug 30, 2018 - (ACN Newswire) - Greenland Hong Kong Holdings Limited ("Greenland Hong Kong" or the "Company", stock code: 337.HK) a subsidiary of Greenland Holdings Corporation Limited ("Greenland Holdings"), which is a leading global real estate company, announced its unaudited interim results for the six months ended 30 June, 2018 (the "period under review").

Business Highlights (As of 30 June 2018)
- Profit for the period attributable to owners of the Company was approximately RMB332 million, representing a year-on-year increase of 46%
- Core net profit* for the period was approximately RMB213 million, representing a year-on-year increase of 267%
- Gross profit margin for the period rose to 24% from 21% for the same period last year
- Basic and diluted earnings per share for the period increased by 57% to RMB0.11The Company acquired 8 pieces of lands with a total GFA of approximately 4.95 million square meters in 7 cities
- Average financing cost remain at approximately 4.7% as at 30 June 2018

*It represents profit and total comprehensive income for the period excluding the post-tax gains arising from fair value changes on investment properties, net exchange gains/losses and net loss on disposal of financial derivatives.

During the period under review, the Company recorded a total revenue of approximately RMB5,302 million, an increase of approximately 12% from the same period last year, primarily due to the increase in gross floor area ("GFA") sold and delivered during the period under review. Net profit attributable to owners of the Company wasRMB332 million, representing a year-on-year increase of approximately 46%. Basic and diluted earnings per share attributable to equity holders of the Company amounted to RMB0.11 per share, increased by 57% compared with RMB0.07 per share during the same period last year. In the first half of 2018, the Group achieved total contracted sales of approximately RMB15,315 million and recorded total contracted sales GFA of 1,270,653 square meters.

Consolidates the traditional real estate business and develops market in potential cities with quality land plots

In the first half of 2018, Greenland Hong Kong strategically increased land bank in core urban areas in the Pan-Yangtze River Delta and the Pan-Pearl River Delta. In January 2018, the Company won the bid for large-scale plots of land for the project, located in Dongmeng Economic Development Zone in Nanning of the PRC. In the same month, the Company further acquired a plot of land located in Yulin City, Guangxi Province of the PRC. Moreover, the Company successfully acquired the thousand-acre Songlong Small Town project in Zhaoqing, Guangdong This project will help Greenland Hong Kong further consolidate its presence in the Pearl River Delta.

In April, Greenland Hong Kong announced winning bid for five plots of land in Wujiaba subdistrict, Guandu district, Kunming city, and planned to build a 458-meter super high-rise, Kunming Greenland Southeast Asia Center, to be the landmark of Kunming city. In May, Greenland Hong Kong won a bid for a land parcel in Wujiang District, Suzhou. The project is expected to become a new high-end central area with integrated functions of residence, business and finance.

Greenland Hong Kong planned to develop a high-quality project in the urban core area. In June, the Company successfully won bid for Little Swan plot in Liangxi district, Wuxi city. In the same month, the Company further acquired a new plot of land, namely Health Home, in Liangxi district, Wuxi city. The project is located in the downtown of Wuxi, also situated in the economy circle within one-hour drive way from Shanghai. The project is endowed with high development value. At the end of June, Greenland Hong Kong successfully won bid for Yiwu project as the first entry into the mid-Zhejiang province, to further develop the market in Zhejiang province.

As at 30 June 2018, Greenland Hong Kong held a land bank of approximately 20 million square meters, which is sufficient to support its development in the next three to four years. The Company will continue to seek additional high-quality land projects with promising potential of development, exploit regional advantages and enhance regional value.

Enhances industry chain layout and supports the old town renovation projects of local governments with own strengths

As the income and health awareness of Chinese citizens arose, and national policies promoted, the demand for health care industry was greatly increased. Greenland Hong Kong would seize market opportunity, focus on healthcare businesses by leveraging its strong brand advantages to create a high-quality life and health service platform. Greenland Hong Kong was also partner with Provectus Care, a renowned Australian elderly care company, and Shanghai International Medical Centre, a domestic top medical institution, to establish the first Shanghai-based medical institution focusing on Dementia, including Alzheimer's disease, and to establish a high-end brand of old-age care, rehabilitation and nursing. In addition, Greenland Hong Kong Health Investment Company was formally established to form a well-established industry chain layout demonstrateing Greenland Hong Kong's determination to deeply explore the big health industry.

Furthermore, Greenland Hong Kong entered into the framework cooperation agreement on the comprehensive renovation projects in five shanty areas with Liangxi Regional People's Government of Wuxi, Jiangsu Province. Relying on its own advantages in property development, urban planning and industrial resources, Greenland Hong Kong will support Wuxi's industrial transformation and upgrading based on Liangxi District's industrial planning and development direction.

Greenland Hong Kong said, "The gradual shifting from high-speed growth to high-quality growth of China's economy has provided increasingly stable external conditions for the real estate market. In the future, with the regulatory remain stable for the real estate market, the housing system will be enhanced through making rental housing as important as home purchasing; and the supply-side structural reform will be deepened to promote the long-term mechanism of the real estate market. Greenland Hong Kong will consistently focus on its real estate business, further explore and preserve high-quality land parcels, expand the high-end residential market, penetrate into the core cities in Pan-Yangtze River Delta and Pan-Pearl River Delta, and address the multilevel consumers' demands in the real estate market. Furthermore, the Company will continuously advance the business strategy of "Real Estate +", establish property projects in sectors such as cultural and business tourism as well as medical and healthcare, reduce cost and raise efficiency, optimize investment structure, and enhance its competitiveness and market influence so as to lay a solid foundation for the business development and work hard towards the sales target of hundred billion dollars."

Greenland Hong Kong Holdings Limited
Greenland Hong Kong Holdings Limited (Stock Code: 337.HK) is the subsidiary of Greenland Group, a Fortune Global 500 company. For a development history of 26 years, Greenland Group has created the diversified development pattern of "focusing on the development of real estate market and placing an equal stress on the emerging sectors like Big Infrastructure, Big Finance, Big Consumption, Healthcare Industry and Innovation Industry", and implemented the strategy of capitalized, popularized and internationalized development. Greenland Group has secured its market presence across over 100 domestic and overseas cities across countries including the United States, Britain, Germany, Australia, Canada, South Korea, Thailand and Malaysia. Based on Greenland Holdings' mature brand image, abundant resources, large-scale system, advanced management level and passionate corporate culture, Greenland Hong Kong will comprehensively integrate all the existing resources, fully utilize the advantages of capital platform in Hong Kong, and strive to grow into the real estate pacesetter at Hong Kong's capital market.

Topic: Press release summary Sectors: Real Estate & REIT, Daily News, Construct, Engineering
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