Revenue up 12.5% to RMB436.7 million
Core Net Profit up 8.8% to RMB294.0 million
HONG KONG, Aug. 25, 2021 /PRNewswire/ -- China Logistics Property Holdings Co., Ltd ("CNLP" or the "Company", together with its subsidiaries, the "Group"; stock code: 1589), a leading provider of logistics facilities in China, today announced its interim results for the period ended 30 June 2021.
In the first half of 2021, China adopted normalized epidemic prevention and control measures as well as various proactive macro policies to cope with the uncertainties of the pandemic and the treacherous international situation, resulting in continuous improvements in the market situation. During the Period, the Group continued to maintain a good operational and financial position. As demands from tenants in e-commerce and third-party logistics providers industries continued to increase, the Group expanded its network of logistics facilities to cope with such demand. The Group's revenue increased by 12.5% year-on-year from RMB388.0 million to RMB436.7 million, with the support of an increase in number of the Group's logistics parks in operation and the average unit rental. The Group's gross profit increased by 12.9% year-on-year from RMB299.4 million to RMB337.9 million. Core net profit[1] increased by 8.8% year-on-year to RMB294.0 million, accounting for 67.3% of the Group's revenue. Profit for the period turned from loss of RMB66.6 million for the same period last year to profit of RMB 295.9 Million, representing a change of 544.1%.
As of 30 June 2021, the Group had cash and cash equivalents of RMB1,066.4 million and the gearing ratio remained at a steady level of 38.6%. The Group's stabilized logistics parks maintained a high occupancy rate of 91.1%, which was mainly attributable to the Group's efforts in accelerating the lease-up cycle and optimizing the tenant portfolio. The Group will continue to maintain constant dialogues with existing and potential tenants to manage lease renewals and fill up vacancies at its logistics facilities in a timely and efficient manner. In particular, the Group will continue to leverage the strong network effect of its logistics facilities portfolio to attract existing and prospective tenants with a view to expanding the Group's national footprint in China. In the meantime, in view of the continuous growth of China's domestic consumption and e-commerce market as well as the strong growth of emerging industries, such as new retail, the Group will continue to optimize its tenant portfolio and increase the proportion of such companies to better meet the market demand.
Strengthening nationwide network across major logistics hubs remains a key focus for the Group's development. The Group has continued to strengthen its nationwide network of logistics facilities by developing its land held for future development and acquiring new land for investment projects, identifying new investment projects and selectively acquiring existing logistics facilities. As at 30 June 2021, the Group has approximately 0.5 million sq.m. of GFA of land held for future development and approximately 4.0 million sq.m. of GFA of investment projects. Going forward, the Group plans to continue focusing on economically developed regions, such as the Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta economic zone, the Bohai economic zone as well as other selected provincial and logistics node cities, to continuously strengthen its nationwide network. Meanwhile, the group will continue to pay attention to the penetration trend of the customer networks of e-commerce, third-party logistics, among others, and look for investment opportunities to customize logistics facilities for specific customers in specific areas to meet their individualized needs, as a way to further improve the national network.
In terms of enriching the product portfolio, the group have not only made to facilitate the traditional and high standard of warehousing services and the development of its ancillary facilities, but also strived to satisfy the warehousing needs of different types of customers through continuous adjustments to the group's products. The cold chain market has experienced rapid expansion due to the upgrade of the consumption industry in China and the gradual standardization of the logistics industry. Aiming to better serve fresh food e-commerce companies and cold chain operators, the group plans to join hands with relevant quality cold chain facilities providers in the future to commence renovation and construction of certain warehousing facilities and build cold room facilities equipped with precise temperature control systems, with a view to satisfying regional warehousing needs of various fresh food e-commerce companies and other customers.
Mr. LI Shifa, Chairman, CEO and President of CNLP, said, "Since 2021, China's macro economy is moving forward steadily. Various domestic industries have exceeded previous levels in terms of production and manufacturing, and people have unleashed unprecedented momentum in life and consumption, which sustains the high level of prosperity in logistics and warehousing industries. The logistics industry and the warehousing facilities industry will continue to benefit from the growth of Chinese economy. The Group will continue its efforts to achieve its goal to develop into the largest provider of premium logistics facilities in China and maintain its leading position as a premium logistics facilities provider in China."
About China Logistics Property Holdings Co., Ltd.
CNLP was one of the early entrants and pure-players in China's logistics facilities market, with major shareholders including Yupei International, RRJ Capital and JD. Since 2000, the Group has participated in the development, operations and management of premium logistics facilities. With over 20 years' experience, the Group has developed a highly effective and return driven business model. As of 30 June 2021, the Company has 179 logistics facilities in operation in 38 logistics parks located in logistics hubs in 19 provinces or centrally administered municipalities, and its prime logistics facilities portfolio reached 4.58 million sq.m., and land bank reached 4.82 million sq.m. The Group's extensive geographic reach and premium logistics facilities create a strong "network effect" that allows tenants to expand across its logistics facilities network as their businesses grow. The Group is a constituent stock of the Shenzhen-Hong Kong Connect and a constituent of the Hang Seng Composite Index.
For further information about CNLP, please visit the Company's website at：http://www.cnlpholdings.com/
[1] The Group defines its core net profit as its adjusted EBITDA, which consists of profit for the period, adding back the group's interest expense on borrowings, other losses, net exchange losses, income tax expense, amortization expense and depreciation charge, further adjusted to deduct the group's other income, fair value gains on investment properties - net, fair value gains/(losses) on convertible bonds - net and other gains, interest income on bank deposits, net exchange gains and share of (loss)/profit of investments accounted for using the equity method.