Revenue significantly up by 65.2% to RMB274.3m
Gross Profit increased by 88.5% to RMB199.3m
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Reinforce nationwide network of logistics facilities, further optimize tenant portfolio
Introduced LaSalle as strategic investment partner to jointly operate logistics warehousing projects in China
Moving towards revenue diversification and asset-light model
HONG KONG, Aug. 31, 2018 /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 six months ended 30 June 2018.
Driven by increasing demand from tenants in e-commerce and third-party logistics providers industries, major logistics market demand has been persistently strong. The Group proactively expanded its network of logistics facilities to achieve a good growth of the business. The Group's revenue significantly increased by 65.2% from RMB166.1 million to RMB 274.3 million year-on-year; gross profit increased by 88.5% to 199.3 million year-on-year, and gross profit margin reached 72.6%.
Benefited from growing demand for logistics services, the Chinese logistics facilities market has witnessed sustained and rapid development, driving the steady growth in rental prices. The Group will strengthen its nationwide network of logistics facilities by developing land held for future development, acquiring new land for investment projects, identifying new investment projects, and selectively acquiring existing logistics facilities. As of 30 June 2018, the Company held 138 logistics facilities in operation in 29 logistics parks, which were located in the logistics hubs in 14 provinces or centrally administered municipalities. The Group has approximately 3.5 million sq.m. of GFA of logistics parks under construction and operation and approximately 3.6 million sq.m. of GFA of land reserve.
In August, 2018, the Group and LaSalle Investment Management Asia Pte. Ltd. ("LaSalle") entered into a cooperation framework agreement to jointly invest up to US$300 million in operating logistics warehousing projects in China. The Company has also granted certain pre-emptive rights to LaSalle in relation to certain of its existing logistics assets and developments. This is a significant milestone for the Group in achieving revenue diversification further positioning CNLP as a leading logistics facilities operator, and transforming into an asset-light model. The Group will be open to more quality partners in deepening the development of fund cooperation, as part of its commitment to optimizing the Group's capital structure and reducing the operational cost. This will further enhance the Group's financial stability, enhancing the quality and speed of business development to deliver better profit for our shareholders and investors.
Mr. Li Shifa, Chairman and President of CNLP, said "In the second half of 2018, the Group will continue to reinforce our strong nationwide network across major logistics hubs, accelerate tenancy occupation cycle, optimize our tenant portfolio, diversify sources of capital and lower costs of capital. Going forward, we will continue to work towards our vision – developing into the largest provider of premium logistics facilities in China and maintaining our leading position."
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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 RRJ Capital, JD and Sino-Ocean. CNLP currently offers three types of logistics facilities: standardized logistics facilities, BTS logistics facilities and sale-and-leaseback logistics facilities, to fulfill specific needs of the tenants. Since 2003, the Group has participated in the development, operations and management of premium logistics facilities. With 15 years' experience, the Group has developed a highly effective and return driven business model. As of 30 June 2018, the Company's prime logistics facilities portfolio reached 3.5 million sq.m, with 138 logistics facilities in operation in 29 logistics parks, located in logistics hubs in 14 provinces or centrally administered municipalities. 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.
For further information about CNLP, please visit the Company's website at http://www.cnlpholdings.com/.