(Hong Kong, 29 March 2018) The board of directors (the “Board”) of Carnival Group International Holdings Limited (the “Company”; stock code: 996.HK) is pleased to announce the consolidated results of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2017 (the “Period”).
During the year, the profit attributable to owners of the Company was approximately HK$394.7 million (2016: approximately HK$123.7 million), representing an increase of approximately 218.98%. The Group recorded a consolidated net profit of approximately HK$525.5 million as compared to the net profit of approximately HK$49.6 million for the year ended 31 December 2016, representing an increase of approximately 958.97%.
The improvement on the results is mainly due to (i) increase in gross profit of approximately HK$456.2 million; (ii) increase in other income of approximately HK$174.6 million; (iii) increase in fair value change on investment properties of approximately HK$141.8 million; (vi) decrease in selling and marketing expenses of approximately HK$242.5 million and so on.
Significant growth of 43.2% in property and investment sectors
The main Revenue from the Group’s property development and investment was approximately HK$1,699.9 million for the year ended 31 December 2017, representing an increase of approximately 43.2%. For the year ended 31 December 2017, the revenue was mostly derived from the sale of residential units of the completed properties in Qingdao and Chengdu in the PRC.
During the year, the Directors have reviewed the business strategy of the Group, and decided to be more focusing on the integrated large-scale tourist complex project and property development. In order to diversify the concentration risk and currency risk, besides the property markets in the mainland China and Hong Kong, the Directors expect to explore more in other geographical locations in the overseas property market.
Highly growth of landing new projects with a solid development of flagship project
The company strives to develop high quality projects in China. During the year, the Group has acquired 100% equity shares of a company, which owns the land use right of a piece of land in Qingdao, China. The Group will develop and sell high-end coastal residential properties. In late 2016, the Group has acquired a property in Hong Kong with the site area of approximately 50,000 square feet. The property is located at Southern District, one of the most prestigious luxury residential areas in Hong Kong. The Directors believe that, in view of the demands in luxury residential property market in Hong Kong, together with the Group’s experience in real estate projects in the PRC, the acquisition of the property will allow the Group to capture future capital appreciation.
In line with the backdrop of “go global” in China, the Company proactively expanded its overseas strategic layout. The board announced that the Company will invest CAD245 million in the high-rise residential projects in the prime location of downtown Vancouver, Canada. The project is located in the West End of Vancouver, the third largest city of Canada. Covering an area of about 41,573 square feet, the project is located in the center of the city which is a piece of rare land parcel with convenient transportation and huge potential for future development. The project is in close proximity to the major high-end commercial and top-notch luxury residential areas of Vancouver with mature development of infrastructure.
Meanwhile, the Group’s flagship project, Qingdao Rio Carnival is also well developed. The project occupies an aggregate site area of approximately 350,000 square metres (“sq.m.”) with a total GFA of approximately 800,000 sq.m.. The project has commenced operations and is in the process of opening in phases. As part of its business model, the Group also develops and sells high-end coastal residential properties adjacent to its theme park, outlet mall and hotels in Rio Carnival (Qingdao).
King Pak Fu, the Chairman of Carnival Group International said, “The 19th National Congress in 2017 and the “two meetings” convened recently have pointed out a clear direction for the next stage of development of China. China’s relaxation consumption and property industry will continue to grow rapidly and will become “strong drivers” for economic development and transformation and upgrade. We will keep our fingers on the pulse of the development in this new era, work earnestly and remain innovative in order to open up our own path of development and bring satisfactory return to shareholders and investors.”