HONG KONG, Aug. 28, 2013 /PRNewswire/ -- Minmetals Land Limited ("Minmetals Land" or the "Company") (Stock code: 0230) announces its unaudited interim results for the six months ended 30 June 2013. The Company recorded consolidated revenue of approximately HK$2.13 billion, up 34% YoY. Profit attributable to equity holders of the Company was approximately HK$138 million and basic earnings per share was HK4.14 cents. Deferred revenue was HK$2.16 billion, up 55% compared to 31 December 2012 figures. The Board does not recommend the payment of interim dividend.
Due to the change in product mix in the real estate development segment, the Company's overall gross margin had noted a decline to 31%. However, the gross margin of real estate development segment increased from 36.3% to 39.5% without taking into account of the fair value amount recognised in the real estate projects of Scotland Town and Tianjin Minmetals International acquired from the parent company in 2010.
The financial position of the Company remained healthy in the first half of 2013. It has successfully completed a bond issuance of US$350 million in April and arranged for a term loan facility of HK$3.8 billion in July this year. As of 30 June 2013, total assets and total equity of the Company were HK$25 billion and HK$9 billion respectively, up 43% and 14% compared to 31 December 2012 figures. Net asset value per share was HK$2.17 (31 December 2012: HK$2.10). Cash and bank deposits were approximately HK$6.7 billion, whilst unutilised banking facilities amounted to HK$308 million. The gearing ratio of net debt to total equity of the Company was approximately 19% (31 December 2012: 31%), which is low compared to industry standards.
In the first half of 2013, the Company booked and delivered property sales with GFA and amount of approximately 124,000 sq.m., up 50% YoY and HK$1.71 billion, up 44% YoY respectively whilst average selling price was HK$13,800 per sq.m. The planned GFA available for sale in the remainder of 2013 is approximately 760,000 s.q.m. As of 25 August 2013, the Company recorded accumulated contracted sales with GFA and amount of approximately 283,000 sq.m. and RMB3.7 billion, equivalent to 62% of the 2013 annual contracted sales target of RMB6 billion. To increase the land bank and fuel the Company's rapid growth in the real estate market in Nanjing, Minmetals Land acquired a parcel of land in Nanjing Hexi New City Zone in March 2013 for RMB3.86 billion. At present, the Company has a land bank in GFA of approximately 4.4 million sq.m., and will continue to expand its land bank in the remainder of 2013 with a cautiously optimistic view.
Mr. He Jianbo, the Vice Chairman and Managing Director of Minmetals Land, commented, "After the major reshuffle of administration in the PRC government, there has been a gradual shift in the Central Government's guiding principle towards property market regulation, yet we do not expect any existing property market controlling measures to be loosened. Nonetheless, the Company is cautiously optimistic towards the long term outlook of the sector, as the growth of end-user demand stays robust. In order to reap the benefits of the sustained market demand, the Company will closely monitor any adjustments of government policy and market conditions in all localities in which it operates. We will continue to seek further improvements on project development, design and sales capabilities, and further enhance the recognition of the "Minmetals Land" brand. We strive for the rapid and sustainable growth of the Company in order to achieve the RMB 10 billion revenue target in 2015. With the committed support of the controlling shareholder, China Minmetals Corporation, along with our ample financial resources and efficient management team, the Company has full confidence in delivering rapid growth in the future."
