Saturday, March 23, 2019
Martin Hennecke

HNA firm to sell two Hainan units
Reuters, Samantha Wong

and Janice Huang

HNA Infrastructure Investment Group Co Ltd said yesterday it plans to sell a property unit and a logistics unit in Hainan to property developer Sunac China for 1.9 billion yuan.

Its parent, aviation-to-financial services conglomerate HNA Group Co, is racing to raise cash following a US$50 billion acquisition spree over the past two years, which has sparked scrutiny of its opaque ownership and use of leverage.

In a filing to the stock exchange, HNA Infrastructure said the deal - sale of the logistics unit for 797 million yuan and property unit for 1.14 billion yuan - would give the company a gain of more than 437 million yuan.

The company said the deal would help to consolidate its resources and streamline its asset structure, accelerating the development of its infrastructure investment business.

On another front, Guangdong-based Agile Group (3383) sees full-year net profit last year increasing by more than 150 percent.

The developer said it was due to increase in group revenue from property sales, as well as its higher gross profit margins.

Meanwhile, Joy City Property (0207), the Hong Kong-listed commercial property arm of state-owned conglomerate Cofco, posted a 44.6 percent year-on-year increase in net profit last year, and it said that Cofco Property Group has no plans to privatize Joy City.

The net profit of Joy City last year stood at 1.15 billion yuan, while the core net profit jumped 1.63 times to 839 million yuan compared with 2016. In 2017, the company achieved contracted sales of 8.16 billion yuan, representing a year-on-year gain of 78.6 percent.

It declared a final dividend of 4 HK cents, unchanged from that of 2016. It aims to reserve cash for mergers and acquisitions as well as other developments, said Xu Hanping, the chief financial officer of Joy City.

Xu said that Cofco Property Group will soon reveal a major restructuring of assets and the group has no plan to privatize Joy City.

Zhou Zheng, chairman of Joy City, said that the company will continue to adjust its hotels, which recorded unsatisfactory profits.

Joy City has sold two hotel projects in Nanchang and Suzhou in recent years.

Elsewhere, the chief executive of China Resources Cement Holdings (1313), Ji Youhong, forecast a stable price level of cement this year, while demand for cement would reach between 2.3 billion and 2.4 billion tonnes.

Ji said the demand for cement in South China will increase by between two and three percent year-on-year in 2018.

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