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POLYTEC ASSET HOLDINGS LIMITED
保利達資產控股有限公司*
(Incorporated in the Cayman Islands with limited liability)
(Stock Code: 208)
2019 INTERIM RESULTS ANNOUNCEMENT
HIGHLIGHTS
- The Group's unaudited net profit attributable to equity shareholders of the Company for the first half of 2019 increased to HK$711 million from HK$648 million, an increase of 9.8% as compared to the corresponding period in 2018.
- Excluding revaluation gains from its investment properties net of tax and fair value gains on its interests in the property development projects, the Group's underlying net profit attributable to equity shareholders of the Company for the first half of 2019 rose to HK$210 million from HK$183 million, an increase of 14.8% compared to the same period of 2018. The underlying net interim earnings per share for 2019 was 4.74 HK cents compared to the underlying net interim earnings per share of 4.13 HK cents in 2018.
- Interim dividend per share for 2019 amounted to 1.30 HK cents (2018: 1.20 HK cents).
INTERIM RESULTS AND DIVIDENDS
For the six months ended 30 June 2019, the unaudited net profit attributable to equity shareholders of the Company and its subsidiaries (collectively the "Group") for the first half of 2019 increased to HK$711 million from HK$648 million, an increase of 9.8% as compared to the corresponding period in 2018. The interim earnings per share for 2019 amounted to 16.03 HK cents compared to 14.60 HK cents in 2018.
Excluding revaluation gains from its investment properties net of tax and fair value gains on its interests in the property development projects, the Group's underlying net profit attributable to equity shareholders of the Company for the first six months of 2019 rose to HK$210 million from HK$183 million, an increase of 14.8% compared to the same period of 2018. The underlying net interim earnings per share for 2019 was 4.74 HK cents compared to the underlying net interim earnings per share of 4.13 HK cents in 2018.
The Board of Directors has declared an interim dividend per share for 2019 of 1.30 HK cents (2018:
1.20 HK cents). The interim dividend will be payable on Wednesday, 11 December 2019 to shareholders whose names appear on the Register of Members of the Company on Tuesday, 26
November 2019.
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POLYTEC ASSET HOLDINGS LIMITED - Interim Results Announcement 21 August 2019
BUSINESS REVIEW
Excluding revaluation gains from its investment properties net of tax and fair value gains on its interests in the property development projects, the Group's underlying net profit attributable to equity shareholders of the Company amounted to HK$210 million for the period under review compared to HK$183 million for the same period in 2018. The increase in the Group's underlying net profit was mainly due to the increase in the income received from its interest in the La Marina development project.
Property Development
Macau
In respect of the La Marina development project, the sale of the project continued to be well received by the market, with sales remaining strong in the first half of 2019, largely due to its excellent transportation network, outstanding design and quality as well as the brand effect. For the period under review, the Group received net income distribution of HK$220 million for its interest in this development project.
In respect of the Pearl Horizon development project, the claim submitted by Polytex Corporation Limited to the Court of Macau on 29 November 2018 to seek compensations from the Macau Government for related losses and damages is still in progress. In case the above mentioned claim and all other possible approaches failed to protect the Group's interests, Polytec Holdings International Limited, a related company of the Group, is committed to indemnifying related losses incurred by the Group for the Pearl Horizon development project. Therefore, there should not be any adverse effects on the financial position of the Group due to the repossession of the development land by the Macau Government.
Mainland China
In regards to the newly acquired Zhongshan property development project, site clearance work was completed and drainage work is in progress. The overall planning for the project by a professional design house is well underway.
The acquisition of Zhuhai property development project is expected to be completed by the end of 2019.
Property Investment
For the period under review, the Group's share of gross rental income generated from its investment properties rose slightly to HK$41.4 million. The rental income was mainly generated from The Macau Square, the Group's 50%-owned investment property in Macau, with its share of total rental income of the property amounting to HK$38.3 million for the first half of 2019 as compared to HK$38.1 million for the same period in 2018.
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POLYTEC ASSET HOLDINGS LIMITED - Interim Results Announcement 21 August 2019
Oil
The oil segment recorded an operating loss of HK$10.3 million for the six months ended 30 June 2019, compared to a loss of HK$8.7 million over the same period in 2018. The increase in operating loss was mainly due to the drop in oil prices and sales volume during the period under review when compared to the first half of 2018.
Ice Manufacturing and Cold Storage
For the period under review, the total operating profit for the ice manufacturing and cold storage segment amounted to HK$8.4 million, a decrease of 12% over the corresponding period in 2018. The decline in operating profit was attributable to the decrease in revenue from ice manufacturing business.
PROSPECTS
The overall economy in Macau appeared to be contracting slightly in the first half of 2019. Together with escalating China-US trade dispute and slowdown in economic growth in China, the home purchasing desire has significantly been affected with investors or home buyers largely taking a wait-and-see attitude. As a result, overall residential transaction volume fell considerably in the first six months of 2019 compared to the same period last year. The property market in Macau will likely remain unchanged for the rest of 2019.
Despite weakening overall sentiment in the property market in the first half of 2019, La Marina recorded outstanding sales, with the project being ranked the bestselling project in Macau for the period under review. This achievement can be attributable to its remarkable products with thoughtful designs aiming to provide residents a modern nice living place, which is well received by the market. The Group remains optimistic about the sales at La Marina in the second half of 2019.
If the Group's two new property development projects in Zhongshan and Zhuhai progress well, it will further increase its investment and extend its development footprint in the Greater Bay Area.
Looking ahead, the income to be received from the Group's interest in the La Marina development project will remain to be the most important contribution to the its results in the second half of 2019. The rental income from its investment properties in Macau as well as the ice manufacturing and cold storage business will be expected to generate stable income for the Group. In view of a slowing global economy and hence weakening oil demand, the Group will evaluate the oil business in Kazakhstan and will make appropriate provisions on its oil assets if necessary.
The Group has been actively exploring investment opportunities in various areas aiming to sustain its continuous growth and development and will make relevant announcements in due course.
I would like to take this opportunity to express my thankfulness to my fellow directors for their professional advices and all staff for their commitment and hard work.
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POLYTEC ASSET HOLDINGS LIMITED - Interim Results Announcement 21 August 2019
INTERIM RESULTS
The unaudited consolidated results of the Group for the six months ended 30 June 2019 together with the comparative figures of 2018 are as follows:
CONSOLIDATED INCOME STATEMENT | ||||||
Six months ended 30 June | ||||||
2019 | 2018 | |||||
Note | HK$'000 | HK$'000 | ||||
(unaudited) | (unaudited) | |||||
Revenue | 3 | 295,467 | 268,447 | |||
Cost of sales | (26,521) | (29,076) | ||||
Gross profit | 268,946 | 239,371 | ||||
Other income | 4,933 | 4,793 | ||||
Selling and distribution expenses | (17,490) | (23,511) | ||||
Administrative expenses | (18,775) | (20,603) | ||||
Other operating expenses | (26,295) | (25,055) | ||||
Fair value changes on interests in property | ||||||
development | 491,709 | 447,153 | ||||
Profit from operations | 703,028 | 622,148 | ||||
Finance costs | 4 | (32,226) | (21,352) | |||
Share of profits of joint ventures | 42,943 | 49,510 | ||||
Profit before taxation | 5 | 713,745 | 650,306 | |||
Income tax | 6 | (1,230) | (1,060) | |||
Profit for the period | 712,515 | 649,246 | ||||
Attributable to: | ||||||
Equity shareholders of the Company | 711,419 | 648,172 | ||||
Non-controlling interests | 1,096 | 1,074 | ||||
Profit for the period | 712,515 | 649,246 | ||||
Earnings per share - basic and diluted | 7 | 16.03 HK cents | 14.60 HK cents |
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POLYTEC ASSET HOLDINGS LIMITED - Interim Results Announcement 21 August 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Six months ended 30 June | ||||
2019 | 2018 | |||
HK$'000 | HK$'000 | |||
(unaudited) | (unaudited) | |||
Profit for the period | 712,515 | 649,246 | ||
Other comprehensive income for the period | ||||
Item that may be reclassified subsequently to | ||||
profit or loss: | ||||
Share of other comprehensive income of a joint | ||||
venture | (3,891) | - | ||
Total comprehensive income for the period | 708,624 | 649,246 | ||
Attributable to: | ||||
Equity shareholders of the Company | 707,528 | 648,172 | ||
Non-controlling interests | 1,096 | 1,074 | ||
Total comprehensive income for the period | 708,624 | 649,246 |
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POLYTEC ASSET HOLDINGS LIMITED - Interim Results Announcement 21 August 2019
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Polytec Asset Holdings Limited published this content on 21 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 August 2019 12:27:02 UTC