EQS-News: Shenzhen Investment Announces 2015 Interim Results - Core Profit Surges 184.8%, Contracted Sales for the Full Year Completed in the First Seven Months

(EQS-News / 28/08/2015 / 11:02 UTC+8) 
 
[For Immediate Release] 
 
Shenzhen Investment Announces 2015 Interim Results 
Core Profit Surges 184.8% 
Contracted Sales for the Full Year Completed in the First Seven Months 
 
 
(27 August 2015 - Hong Kong) Shenzhen Investment Limited ("SZI" or the 
"Group", SEHK stock code: 604.HK) is pleased to announce its unaudited 
interim results for the six months ended June 2015 (the "Period" or 
"1H2015"). 
 
In 1H2015, driven by picking-up of housing demand and capital markets, the 
real estate market recovery is strong in China's major cities. Both the 
trading volumes and prices have increased significantly. The Group promptly 
grasped this market opportunity to firmly implement the strategy of 
"intensifying the development in Shenzhen" and achieved desired sales 
results, realizing accelerated development. 
 
Highlights 
 
  - In 1H2015, the Group achieved a turnover of HK$6,279.1 million, 
    representing a substantial increase of 47.5% over the same period of 
    last year; profit attributable to the owners of the Company amounted to 
    HK$984.7 million, representing an increase of 3.1% over the same period 
    of last year; 
 
  - During the period under review, core profit (excluding the net effect 
    of the changes in fair value of investment properties attributable to 
    the Group and one-time gain on disposal of a subsidiary at the same 
    period of last year) amounted to HK$437.3 million, representing a 
    substantial increase of 184.8% over the same period of last year; 
 
  - In 1H2015, the gross profit margin of the Group as a whole was 34.0%, 
    representing an increase of 9.8 percentage points over the same period 
    of last year; the gross profit margin of property development and sales 
    was recorded 36.6%, representing an increase of 12.6 percentage points 
    over the same period of last year; 
 
  - During the first seven months of 2015, completed RMB11.15 billion 
    contracted sales, representing a year-on-year increase of 195%, and 
    completed its target contracted sales for the full year ahead of 
    schedule; 
 
  - As at 30 June 2015, cash on hand (including pledged deposits and 
    restricted cash) of HK$15,022 million; net gearing ratio (including all 
    the liabilities carrying interest) at 59.0%, representing a decrease of 
    20.9 percentage points over the same period of last year; 
 
  - The Board has declared 2015 interim dividend of HK3.00 cents per share 
    to be paid in cash. 
 
Outlook 
 
Mr. Lu Hua, Chairman of Shenzhen Investment said, "In recent years, the 
differentiation of the real estate industry has been accelerating. Region 
and product differentiation is increasingly evident. The value of the 
assets in the core location of the first-tier cities is gradually becoming 
prominent. As the capital of innovation of China, Shenzhen's 
entrepreneurial atmosphere is strong and very attractive to the foreign 
population. In a few consecutive years, it maintains a net inflow of 
population. At present, it has a population of close to 20 million, with an 
average age of 30 years, and a higher real estate demand and spending 
ability than other cities in China. The Group is firmly optimistic about 
the long-term development prospect of the real estate market in Shenzhen. 
 
"We will continue to firmly implement the Company's strategy of 
"intensifying the development in Shenzhen", to continue to expand the land 
reserves in Shenzhen by the asset injection from the parent company, 
Shenzhen's urban renewal project and the cooperation with state-owned 
companies, such as Shenzhen Metro Group. 
 
Mr. Lu Hua said, "Both China's economy and real estate industry are coming 
through an important transformation. Facing the external adjustment, the 
Group will focus on developing its main business, meanwhile, make a good 
preparation for the transformation. The Group has formulated the strategy 
of transformation from the development model focusing on the development 
and sales to the development model of development, sales, holding and 
operation. We will maintain a steady growth in the scale of the development 
and sales, meanwhile, increase quality investment properties, implement 
"intensive and meticulous cultivation" and operate efficiently, to strive 
to achieve property appreciation and steady increase in the rental 
contribution. Having many years of practice, the Group has laid a solid 
foundation in the development of asset light business with operation and 
service as the core, and has had broad resources. In the future, the Group 
will integrate resources, exploit its advantages and actively build its 
three major operation service centers, i.e., wisdom industrial park 
operating platform, residential property service platform, and commercial 
management and operation platform. Through building a unified product and 
service platform and applying internet tools, the Group will focus on 
providing customers with value-added services, such as government affairs, 
business, E-business and community finance service, to improve the 
operation level and operation income, and promote the development of the 
asset-light business with operation and service as the core." 
 
"We believe that through unremitting efforts, the Group will be able to 
continue to make considerable progress in scale expansion, value 
enhancement, transformation and upgrading, and constantly consolidate its 
leading position in Shenzhen's real estate market to create continuously 
greater value and provide better return for shareholders." 
 
-END- 
 
For latest news about Shenzhen Investment, please go to the official 
website (www.shenzheninvestment.com) 
 
For enquiry, please contact: 
 
Shenzhen Investment Limited            Financial PR (HK) Ltd. 
Nicole Zhou  [e-mail]      Dawn Lee   [e-mail] 
                                       Canace Xie  [e-mail] 
Tel: [phone]                   Tel: [phone] 
                                       Fax: [phone] 
 
 
End of Press Release 
 
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Document: http://n.equitystory.com/c/fncls.ssp?u=NTMLQROTFB 
Document title: Shenzhen Investment Announces 2015 Interim Results - 
Core Profit Surges 184.8%, Contracted Sales for the Full Year 
Completed in the First Seven Months 
 
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Key word(s): Half Year Results 
 
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August 27, 2015 23:03 ET (03:03 GMT)