CNQC Announces 2020 Annual Results Speedy Recovery in Singapore Segment and Rapid Growth in Hong Kong Segment the Company Continues to Pay Dividends Steadily

CNQC International Holdings Limited  (Incorporated in the Cayman Islands with limited liability)

(Stock code: 1240.HK)

CNQC Announces 2020 Annual Results

Speedy Recovery in Singapore Segment and Rapid Growth in Hong Kong Segment

the Company Continues to Pay Dividends Steadily

Ÿ Property development business in Singapore maintains a strong sales status under the epidemic situation. Among them, Le Quest was pre-sold during the year, the accumulative contracted sales rate of it exceeded 99%, with over 510 units sold. It recognised sales revenue of approximately HK$838.1 million with an ideal sales situation

Ÿ Active development of the Group has driven the revenue of the Hong Kong and Macau segment to approximately HK$1.3 billion, representing an increase of approximately 44.4% over that of last year

Ÿ Hong Kong Government has strongly encouraged the Modular Integrated Construction (MiC). The Group as one of the pioneers of this construction method, and has been granted the In-Principle Acceptance (or IPA) for MiC steel structures by the Hong Kong Buildings Department during the year, which will help to enhance the Group's market share in Hong Kong

 (30 March, 2021 - Hong Kong) CNQC International Holdings Limited (“CNQC International”, “the Company”, together with its subsidiaries, collectively “the Group”, stock code: 1240.HK), a leading property developer and contractor in Singapore, is pleased to announce its consolidated results for the year ended 31 December 2020 (“the Reporting Period”).  

During the reporting period, the Group’s total revenue was approximately HK$5.1 billion, the profit attributable to owners of the Company was HK$218.1 million. The decrease in total revenue was mainly due to the coronavirus lockdown measures imposed by the government of Singapore during the period in the first half of the year, a temporary suspension of both the construction and property sales activities of the Group in Singapore, and the impact on the recognition of revenue during the year for private condominium development projects which recognize pre-sales money received as revenue based on construction progress.

Revenue from the foundation and construction in Hong Kong and Macau for the Reporting Period was approximately HK$1.3 billion, up by 44.4% over that of last year, and this segment is relatively ideal.

The Board recommends the payment of a final dividend of HK$0.08 per ordinary share and CPS. (2019: HK$0.04 per ordinary share and CPS).

Property development business

The Group focused on the development and sale of quality residential projects in Singapore. During the Reporting Period, Le Quest, and mixed-use property development project of the Group in Bukit Batok, obtained the Temporary Occupation Permit (“TOP”) from the BCA. The accumulative contracted sales rate exceeded 99%, with over 510 units sold. It recognised sales revenue of approximately HK$838.1 million.

The private condominium development projects received good market response. As at the end of 2020, the accumulative contracted sales rate of Jadescape exceeded 66%, with approximately 860 units sold. The Group’s newly launched project, Forett at Bukit Timah, with accumulative contracted sales rate of over 31% and approximately 200 units sold for the year. These two projects were granted the Green Mark Building Gold Plus Award (綠色建築超金獎) from BCA.

The group completed the acquisition of the land transaction of the Phoenix Road Project in mid-2020, which is a private condominium development project on a leasehold land with a land use right of 99 years. The project has a land site area of approximately 5,938 sq.m. and the total estimated gross floor area is 8,313 sq.m.. It is planned to redevelop into 3 blocks of 5-storey apartments with about 100 residential units, underground carparks and communal facilities. The construction is scheduled to be completed in December 2024.

For land bank status, the Group acquired the land parcels at Yau Tong Marine Lot No. 58 & 59 and their extensions thereto. Town Planning Board Application to redevelop the site into a residential development was approved in June 2020. During the reporting period, the Group and joint venture partners have acquired over 86% ownership in two blocks of residential buildings in Sham Shui Po, Hong Kong. It is intended to redevelop the site into a residential building with a commercial podium. Vanke Property (Hong Kong) Company Limited and the Group were awarded a land site in New Territories, Hong Kong under Tai Po Town Lot No. 243 from the Government at a land premium of approximately HK$3.7 billion. The site area is approximately 243,353 sq.ft. and the maximum gross floor area is 781,897 sq.ft.. It is intended for residential redevelopment.

Construction business

The Group’s revenue from the Singapore and other Southeast Asia countries construction contracts for the Reporting Period was approximately HK$2,781.2 million. For the Singapore segment, the Group completed 3 construction projects and obtained 4 new construction projects with aggregated contract sum of approximately HK$707.4 million for the Reporting Period. As at 31 December 2020, there were 22 external construction projects on hand and the outstanding contract sums were approximately HK$5.39 billion.

For the Southeast Asia construction market, the Group was awarded 4 new construction contracts in Malaysia and Myanmar with aggregated contract sums of approximately HK$908.8 million. As at 31 December 2020, the outstanding contract sums of the 7 construction projects on hand were approximately HK$1.26 billion.

As for the Hong Kong & Macau segment, the revenue attributable from construction contracts in Hong Kong & Macau was approximately HK$1,323.3 million. The Group was awarded 22 new foundation and superstructure construction projects with aggregated contract sums of approximately HK$1.67 billion. As at 31 December 2020, the outstanding contract sums of the 23 projects on hand were approximately HK$1.52 billion.

Mr. Cheng Wing On, Michael, Chairman of CNQC International, said: “Looking ahead to 2021, the pandemic is expected to be contained gradually and the global economy is expected to recover steadily as the vaccine technology for COVID-19 is maturing. Singapore’s 2021 budget introduces numerous measures to stimulate economic development, and room for expansion as the global quantitative easing has boosted asset prices and made Singapore property market more active. In 2021, Singapore property market is expected to keep the optimistic trend in the second half of 2020, which showed an upward trend in private residential price index to create opportunities for the sales of the Group in property projects. The Singapore market continues to provide the Group with long-term growth opportunities. The Group will continue to build on its roots in the Singapore market and seek out quality projects to capitalize on its leading position in property development and consolidate its position as a leading local developer.”

“The Hong Kong Government is actively promoting the “MiC”, which advocates green construction. The Construction Industry Innovation and Technology Fund has so far granted over HK$75 million to support the industry to adopt this construction method. The Group has been successfully granted the In-Principle Acceptance (or IPA) for MiC steel structures in Hong Kong. With the Group’s years of experience and technology in Singapore, the management believes that the Hong Kong construction segment can seize these opportunities to enhance the business and profitability of the Company in the long run.”

“Besides, with the outbreak of the epidemic, the global focus on the pharmaceutical and healthcare industries will increase significantly. The Group invested in a pharmaceutical fund in the first half of this year which the Group has agreed to invest up to HK$200 million. The rate of return of the Fund is targeted to be no less than 20% per annum. The Fund is primarily engaged in the investment in healthcare and biotechnology related business including the development and manufacturing of new drugs and medicines, medical equipment and traditional medicine. The investments in the Fund provides an opportunity for the Group to become a financial investor in the healthcare and biotechnology related business and diversify the risk of the underlying investments to achieve reasonable returns for the Group. Furthermore, the Group will continue to expand projects with potential development into the countries and areas in the ‘Belt and Road’ initiative, to further broaden business development in Malaysia, Indonesia, Vietnam, Cambodia, etc., and vigorously grasp the investment opportunities in the Guangdong-Hong Kong-Macau Greater Bay Area to consolidate the long-term and steady development of the Group and create ideal value returns for shareholders.”