HONG KONG, March 28, 2012 /PRNewswire-Asia/ -- Minmetals Land Limited ("Minmetals Land" or the "Company") (HKEx Stock code: 0230) is pleased to announce its 2011 annual results, its revenue and profit have reached a new record high. For the financial year ended 31 December 2011, the Company recorded consolidated revenue with a year-on-year growth of 221% to HK$5.33 billion whilst profit for the year increased by 27% year-on-year to HK$772 million. Such record performance was attributed primarily to the strong contribution from the operating segment of real estate development, its profit grew rapidly by 91% year-on-year from HK$774 million to HK$1.48 billion. Due to the change of product mix, the Company's overall gross margin reduced slightly to 32% when compared to last year. Fair value gain on investment properties amounted to approximately HK$56 million (2010: HK$37 million).
Since the Company had issued approximately 600 million shares to controlling shareholders at the end of 2010 for the acquisition of three prime real estate development projects from the parent company, China Minmetals Corporation ("China Minmetals"), the weighted average number of shares in issue increased by 21% year-on-year to 3.34 billion shares. Accordingly, basic earnings per share slightly reduced from HK19.1 cents to HK18.3 cents. The Board proposed a final dividend of HK1 cent per share.
As at 31 December 2011, total assets and net assets of the Company increased year-on-year by 10% to HK$17.0 billion and 16% to HK$7.3 billion respectively, net assets value per share amounted to HK$2.17. On the other hand, cash and bank deposits amounted to HK$3.02 billion (2010: HK$3.36 billion) whilst unutilised banking facilities amounted to HK$3.67 billion (2010: HK$0.6 billion). Net debt to equity ratio was relatively low by industry standard despite of an increase from 11% at the end of 2010 to 30%.
During the year, China Minmetals had speed up the development and restructuring of its real estate operations. At present, China Minmetals has a land bank in GFA of over 11 million square meters. Simultaneously, the Company had also advanced in different operating dimensions with an expanded real estate development portfolio of 10 projects over 7 provincial cities in China. Development projects built by the Company in these localities were being regarded as benchmark against other projects, which further enhanced the recognition of the "Minmetals Land" brand in China's property market. During the year, the Company's land bank in GFA increased by approximately 270,000 square meters. Currently, the Company has a total land bank in GFA of approximately 3.7 million square meters.
Mr. He Jianbo, Managing Director of Minmetals Land, said with great confidence, "In the midst of this increasingly challenging market environment, substantial efforts and resources had been devoted in 2011 to enhancing the Company's overall operation and management efficiencies in its projects. Our aim is to deliver fine product to the satisfaction of purchasers by creating a win-win situation. Concurrently, we will stringently monitor the cost of developments and remain committed to the strategy of strengthening our corporate franchise and identity for the 'Minmetals Land' brand through product and capabilities in China's property market. We predict the regulatory and control measures in China's property market in 2012 are likely to continue, although some minor refinements in policies and priorities might materialise. This year, the Company is committed to a steady expansion strategy including a planned construction and completion GFA of 1 million square meters and 0.5 million square meters respectively. Target contracted sales is RMB4 billion and GFA of approximately 380,000 square meters, representing an increase of 10% and 9% respectively from the actual contracted sales of 2011. As at 31 December 2011, there were over RMB2 billion contracted sales recorded in which vast majority of it will be recognized as revenue in 2012. As at 25 March, 2012, the Company recorded subscription sales and contracted sales of RMB0.55 billion and RMB0.3 billion respectively.
"The property industry will be under continuous regulatory and control measures this year. The Company views such period of industry consolidation with cautious optimism and, with the ample financial resources at our disposal, the opportunities for further site acquisition and business expansion will surely be evaluated and considered prudently. Together we will make use of such period of industry consolidation to enhance our 3 core competence, namely, development and management, capital and management team capabilities. Looking ahead, with the committed support of the controlling shareholder, the Company has full confidence in building Minmetals Land to become an influential and highly regarded national organisation, and to create the highest value for the Company's employees, shareholders and the society."
Corporate Information
About Minmetals Land Limited
Minmetals Land Limited is a subsidiary and the Hong Kong-listed real estate flagship company of China Minmetals Corporation. Minmetals Land Limited is principally engaged in real estate development and specialized construction businesses. Currently, its real estate development business covers the Pearl River Delta, Yangtze River Delta, Pan Bohai Rim regions and Central regions while the specialized construction business that based in Shanghai and Hong Kong has coverage in fifteen provinces and cities in the country.
About China Minmetals Corporation
Founded in 1950, China Minmetals Corporation is a large sized globally operated state-owned corporation that principally engaged in ferrous metals, non-ferrous metals, real estate, finance and logistics. China Minmetals Corporation is one of the core state-owned conglomerates under direct supervision of State-owned Assets Supervision and Administration Commission of the State Council. It is also one of the 21 SOEs authorised by the SASAC to operate real estate development as core businesses. It was ranked no. 228 in the US Fortune Global Top 500 list in 2011. China Minmetals' recorded total revenue of approximately US$56.4 billion (RMB355.2 billion) in 2011. It is the ultimate controlling shareholder, through China Minmetals H.K. (Holdings) Ltd., the intermediate controlling shareholder, which holds approximately 62% of the issued shares of Minmetals Land Limited.
