Maintains industry leading position with revenue surges by 31.3% YoY
HONG KONG — China Logistics Property Holdings Co., Ltd (“CNLP” or the “Company”, together with its subsidiaries, the “Group”, Stock code: 1589), a leading provider of premium logistics facilities in China, today announced its unaudited interim results for the six months ended 30 June 2017 ( “Reporting Period”).
Highlights：
– Revenue totalled RMB166.1 million, up 31.3% YoY
– Gross profit reached RMB105.7 million, up 19.3% YoY
– Net profit attributable to shareholders surged to RMB428.7 million
– Total asset totalled RMB16.1 billion
– Approximately 3.1 million sq.m. of GFA of in operation and under construction
– Approximately 3.8 million sq.m. of land bank
Financial Highlights
During the Reporting Period, the Company enjoyed growing momentum as it actively expanded its business presence to capture increasing demands from tenants in e-commerce and third-party logistic providers industries. Benefitting from the increasing number of the Group’s logistic parks in operation and the aggregate gross floor area (“GFA”), revenue increased from RMB126.4 million the same period last year to RMB166.1 million for the first-half of 2017, representing a significant rise of 31.3% compared with the same period last year. Gross profit increased from RMB88.6 million the same period last year to RMB105.7 million, a growth of 19.3% compared with the same period last year. Total asset totalled RMB16.1 billion, and net profit attributable to shareholders was RMB428.7 million.
The Group seeks to diversify its sources of capital, including without limitation, offshore and onshore debt securities, equity or equity-linked securities and onshore and offshore loans, as well as soliciting investments from limited partners through investment fund structure. In August 2017, the Group successfully issued senior notes in the aggregate principal amount of US$100,000,000, bearing interest at a rate of 8% per annum and due in August 2020. The proceeds from the issuance will be used to repay existing offshore indebtedness and for general corporate purposes. On 24 July 2017, the Group and Total Superb Investment Limited (“Total Superb”) entered into a share purchase agreement to sell in aggregate 100% shareholding interest in Yupei East China Logistics Property Management Co., Ltd at the consideration of US$131,428,946.00 in cash to the latter. Total Superb further agreed to render to Shanghai Yuji Investment Management Consulting Company Limited (an indirect wholly-owned subsidiary of the Company, “Shanghai Yuji Investment”) a discharge amount of RMB 14,037,469.50 in cash, for a loan owed to the Group by Shanghai Yuji Investment.
Business Development
Over recent years, thanks to the growing demand for logistic services, Chinese logistic facilities market has witnessed sustained and rapid development, but the amount and quality were far lower than that of the developed markets. Across the industry, the demand of premium logistic facilities leasing market in China continued to maintain a strong momentum, third-party logistic and e-commerce still took a leading position in the leasing market, surpassing the traditional retail sector. The demand for modern logistic solutions has been propelled by this large-scale and highly-efficient transportation of goods. For the overall supply and demand relation, there were still some over-demand circumstances in Chinese premium logistic facilities market, driving a steady growth in rental prices. The Group has continued to strengthen its nationwide network of logistic facilities by developing its land held for future development and acquiring new land for investment projects, identifying new investment projects and selectively acquiring existing logistic facilities. As of 30 June 2017, the Group had 116 logistic facilities in operation in 24 logistic parks, located in logistic hubs in 13 provinces or centrally administered municipalities. The Group has approximately 3.1 million sq.m. of GFA of logistic parks in operation and under construction, and approximately 3.8 million sq.m. of land bank.
CNLP will continue to leverage the strong network effect of its logistic facilities portfolio to attract existing and prospective tenants, fill up vacancies at its logistic facilities in a timely and efficient manner, and optimize tenant portfolio, so as to expand its national footprint in China. As of 25 August 2017, the Group’s occupancy rate for stabilized logistic parks increased to 88.5%, which reached the Company’s expectation.
Mr. Li Shifa, Chairman and President of CNLP, said, “During the second half of 2017, the Group will continue its efforts to achieve its goal to develop into the largest provider of premium logistic facilities in China and maintaining its leading position. In addition to expediting the development and construction of logistic facilities, and promoting leasing to meet the market’s huge demand, we will also seek to diversify our sources of capital, and to improve gearing ratio. The Group will continue to recruit both domestic and international talents, in order to create a well-rounded work force with a diversity of backgrounds. Last but not least, we will strive to reduce environmental impact on operations, promoting environmental sustainability.”