Grand Ming Group Announces Interim Results for the Six Months Ended 30 September 2024

Highlights

- Revenue amounted to HK$683.7million, an increase of 257% from the last corresponding period.
- Net profit for the period was HK$52.6 million, representing a decrease of 52.7%.
- The Board resolved not to declare any interim dividend for FH 2024/25.
- Develop the two new data centres iTech Tower 3.1 and 3.2 in Fanling in good shape.
- Continue to sell the remaining units of The Grand Marine and Cristallo.

HONG KONG, Nov 26, 2024 - (ACN Newswire) - Grand Ming Group Holdings Limited (the "Company" and together with its subsidiaries, the "Group", stock code: 1271.HK) today announces its interim results for the six months ended 30 September 2024 ("FH 2024/25").

The Group's consolidated revenue increased by 257% from HK$191.7 million for the six months ended 30 September 2023 ("FH 2023/24") to HK$683.7 million for FH 2024/25. The Group recorded a net profit of HK$52.6 million for FH 2023/24, representing a decrease by 52.7% when compared to that of HK$111.1 million for FH 2023/24. Basic earnings per share was 3.7 HK cents (FH2022/23: 7.8 HK cents). The Group's underlying profit for FH 2024/25, excluding the effect of the change in fair value of investment properties, amounted to HK$27.0 million, representing an increase of 19.8 times as compared to an underlying profit of HK$1.3 million for FH 2023/24. Increase in revenue and underlying profits were mainly attributable to increase in units of “The Grand Marine” and “The Grands” completed and handed over to buyers during the period under review.

With challenging market landscape and adhering to prudent financial management, the Board resolves not to declare any interim dividend for FH 2024/25.

The Group has demonstrated a high level of expertise in initiating and executing property development projects. At present, the Group’s completed property projects for sale include "The Grand Marine" at Tsing Yi, “The Grands” at To Kwa Wan, and “Cristallo” at Kowloon Tong.

The residential development project “The Grand Marine” is located at No. 18 Sai Shan Road, Tsing Yi, the New Territories. It offers 776 units with a total gross floor area of approximately 400,000 square feet. Market response was overwhelming with all typical units being sold and only a few special units remained available for sale. During the period under review, around 4% (in terms of units) of the total units were handed over to buyers with related revenue recognised in FH 2024/25.

The residential-cum-commercial development project “The Grands”, located at No. 45 Pau Chung Street, To Kwa Wan, Kowloon in close proximity to MTR To Kwa Wan station, provides 76 residential units with commercial shops on the ground and first floor covering a total gross floor area of approximately 31,000 square feet. This project was also well received and all residential units had been sold.  During the period under review, around 18% (in terms of units) of the residential units were handed over to buyers with related revenue recognised in FH 2024/25.

The luxury residential project at No. 279 Prince’s Road West, Kowloon, namely “Cristallo”, was well received in the market. Cumulatively 15 out of the total 18 units had been sold. In November 2024, one apartment was sold and completion of the sales is scheduled to take place in November 2025.

The Group continued to execute its two property development projects located at No.1 Luen Fat Street, Fanling, and No. 66 Fort Street and No. 57 Kin Wah Street, North Point respectively.

The site situated at No.1 Luen Fat Street, Fanling, the New Territories, is developing into a 17-storey residential-cum-commercial tower plus two-level underground car park with a total gross floor area of approximately 36,000 square feet. Superstructure works has been progressing well and the development is scheduled to be completed in or around mid-2025. In September 2024, the Group accepted the offer from the Lands Department in respect of the land premium for the proposed in-situ land exchange. A deposit of the same was subsequently paid in October 2024.

The project in North Point comprises two sites at No. 66 Fort Street and No. 57 Kin Wah Street, North Point, Hong Kong, with a total gross floor area of approximately 30,000 square feet. The site at No. 57 Kin Wah Street will be developed into a 27-storey residential tower, while the site at No. 66 Fort Street will be developed into a single-storey commercial shop. Foundation works is in progress and the project is expected to be completed in or around the second half of 2027.

The balanced portfolio development initiative also includes geographical footprint expansion. The Group's development project in Mainland China is located in the Guangxi-ASEAN Economic and Technological Development Zone, Wuming District, Nanning City, Guangxi Province, with a gross floor area of approximately 1,435,000 square feet. It will develop into a luxury residential project with a leisure and healthy lifestyle theme, comprising high-rise apartments and villas, complemented by facilities including commercial and a wellness centre. It will target at the elderly, retirees and their families. Superstructure works of the high-rise apartments and basement construction works for the remaining part of the site are now underway. The development is expected to be completed in or around the second half of 2026.

The data centre leasing business sustain a steady development. The Group currently owns two data centres, iTech Tower 1 and iTech Tower 2. Revenue from its leasing business increased by 4.3% year on year to HK$139.0 million. This was mainly due to increasing power consumption by customers.

Construction works of the two new data centres in Fanling, the New Territories, namely iTech Tower 3.1 and iTech Tower 3.2, are progressing well. For iTech Tower 3.1, installation of the electrical and mechanical equipment and internal fitting out works are now underway. This data centre is scheduled for phased delivery starting mid-2025. For iTech Tower 3.2, foundation works had completed and superstructure works has commenced. This development is scheduled to be completed in or around 2026.

Mr. Chan Hung Ming, Chairman and Executive Director of Grand Ming Group Holdings concluded, “Our successful business evolution and transformation into a property development company gives us the confidence to address macro trends and market dynamics in a challenging economic environment.  Our balanced operating and property portfolio, demand-driven development pipeline, committed management and continuous evolutionary mindset position us well to weather the current volatility while staying the course to drive future growth and value creation.”

“The economic landscape remains challenging and highly volatile. The geopolitical tension, Sino-US relations and trends of interest rates pose considerable uncertainty in the economy outlook. Despite of these uncertainties, we remain steadfast in our strategy and cautiously optimistic of the medium and long term prospects of the Hong Kong and Mainland property market. We will focus on the completion and delivery of our development projects.  Furthermore, we will closely monitor the market changes and continue to market the remaining units of ‘The Grand Marine’ and ‘Cristallo’.  We also relentlessly focus in managing our financial resources and position, including cash flow generation from our business operations and the gearing level, as well as explore refinancing opportunities that will enhance the Group’s financial position to pursue a long-term sustainable growth and development. Meanwhile, we have initiated the preparatory works for the pre-sale of Fanling Luen Fat Street residential project, which is scheduled to take place in the second half of 2025.”

“We are on the right track to seize the opportunities of the era for the emergence and widespread use of AI which gives rise to an increasing demand for data centre with hyperscale facilities. iTech Tower 3.1 and 3.2 have been designed to cater for AI workloads and cloud computing. We are working diligently with the customer to ensure delivery of the data centre of iTech Tower 3.1 meets their requirement. Besides, discussion with potential customer for leasing iTech Tower 3.2 has commenced.  At the same time, we maintain our commitment of delivering reliable services and support to our customers of iTech Tower 1 and 2, and maintaining and upgrading the mechanical and electrical provisions in these two data centres so as to keep abreast of the technological trends and changes.”

About Grand Ming Group Holdings Limited (Stock code: 1271.HK)
The Group is principally engaged in the business of property development and property leasing, as well as building construction. As a local wholesale co-location provider of high-tier data centres, the Group is one of the dedicated service providers in Hong Kong which owns and uses the entire building for leasing to customers for data centre use. Its clientele includes multinational data centre operator, telecommunications company and financial institutions. The Group owns two high-tier data centre buildings, namely iTech Tower 1 and iTech Tower 2. It also acquired two pieces of land in Fanling, the New Territories for developing into two high-tier data centres which have been named as iTech Tower 3.1 and 3.2. Furthermore, the Group’s property development projects for sale include "The Grand Marine" at No.18 Sai Shan Road, Tsing Yi, "The Grands" at No. 45 Pau Chung Street, To Kwa Wan and “Cristallo” at No. 279 Prince’s Edward Road West. Besides, property development in progress includes a site located at No.1 Luen Fat Street, Fanling and a site located at No. 66 Fort Street and No. 57 Kin Wah Street, North Point.  In Mainland China the Group owns a piece of land at Guangxi-ASEAN Economic and Technological Development Zone, Wuming District, Nanning City, Guangxi Province for development into a luxury residential project under the theme of leisure and healthy lifestyle.  

Media Contacts:
Angel Yeung | Jovian Communications Ltd |Email: news@joviancomm.com