(23 December 2017 – Hong Kong) Carnival Group International Holdings Limited (“Carnival Group International” or “the Company”, stock code: 996.HK) published an announcement on 22 December, announcing the disposal of Nice Race Management Limited to an independent third party at a consideration of approximately HK$280 million. Upon the disposal, Nice Race Management Limited would no longer be a subsidiary of Carnival Group International, and its financial statements would no longer be consolidated into the listed company system of Carnival Group International. The disposal is expected to incur a carrying amount of HK$44,000,000 to Carnival Group International. On 21 December, Carnival Group International announced that it had entered into an agreement with BFT, the former controlling shareholder of Nice Race Management Limited, pursuant to which it agreed to reduce the consideration of convertible bonds issued in 2015 involving the purchase and sale of Nice Race Management Limited from HK$240,740,000 to HK$72,500,000. The remaining principal amount of HK$168,240,000 of the bonds would be fully cancelled, terminated and discharged.
Not only would the disposal of the Nice Race Management Limited and the substantial reduction in the consideration of the convertible bonds bring considerable financial benefits to Carnival Group International, but it was also in the interests of the Company and its shareholders as a whole, laying a solid foundation for the future of the Company. In the new year, the Company will streamline its structure, concentrating its resources and capital advantages, focusing on the development of the principal real estate business of the Company.
In 2017, Carnival International continued to uphold the positioning of developing comprehensive projects of one-stop tourism, hotel and retail, with multiple projects introduced. Among which, the flagship project of the Company, namely Qingdao Rio Carnival, has become a new landmark in Qingdao. In the project, Rio Carnival Outlets, as the one-stop direct-sale outlets of international brands, gather up the domestic and international A-list brands and other famous brands. Thematic promotion activities such as Fashion Week in July, Qingdao Beer Festival and Qingdao City Shopping Festival in August, Golden Week holiday in October and Christmas Lighting were successfully held, with flow of visitors in August alone exceeding 600,000, representing a year-on-year increase of 49%. In addition, Rio Carnival, again, created decent results during the extra-long Golden Week of national celebration in this year, with a series of “Having fun in Golden Week” activities attracting over 500,000 visitors, while the average number of visitors per day represented a year-on-year increase of 20%. It is worth mentioning that phase two of Rio Carnival housings was on sale in the third quarter of this year, with average price per square meter exceeding RMB24,000, and it is expected to bring considerable income for the Company. In addition, the Company also focused on developing quality comprehensive projects in domestic first and second-tier cities. Following the success of Chengdu Carnival International Community, in this year, the Company also invested in the Qingdao Old Stone Man Project and Beijing Poplar Forest Project in succession. In the meantime, the Company also proactively commenced overseas strategic layout, including real estate development projects in Shouson Hill, Hong Kong and Vancouver, Canada.
In terms of the Company’s future development, Jing Baifu, the Chairman of Carnival International stated that: “In the future, the Company will continue to develop comprehensive projects of one-stop tourism, hotel and retail, focusing on the strategic layout of assets with great potential in domestic first and second-tier cities and overseas first-tier cities to create generous returns for the shareholders and investors.”