Monday, November 30, 2020
Martin Hennecke
HKEx Stock Code : 08291 
Corporate Profile
The Group is principally engaged in the business of property development, property leasing, building management services and provision for advisory and consultancy services.

Business Review - For the year ended December 31, 2012

Property development business

Fond England , a green residential project with gross floor area (“GFA”) of over 150,000 square meters (“sq.m.”) in Nanning, was aggregately sold and pre-sold for over 90% as at 31 December 2012. In 2012, approximately 34,000 sq.m. including residential units, car parking space and commercial shops were sold and delivered to the purchasers. The profit before income tax of this segment was approximately HK$77.6 million for the year ended 31 December 2012.

With regards to the Li Yuan property development project with a site area of 9,074 square meters, the project is planned to build a residential and commercial project located in New & Hi-Tech Industrial Development Zone in Nanning . As of 31 December 2012, the Group paid approximately HK$63.7 million as land premium to the local government for the development. The Group had obtained the project listing approval from the Construction Land Planning Permits in November 2011 and February 2012 respectively. The Group is developing the Li Yuan Project site into a residential and commercial complex with a total of GFA of approximately 46,792 sq.m., consisting of high rise residential apartments with a total GFA of approximately 32,719 sq.m., retail shops with a total GFA of approximately 3,579 sq.m., car parking space with a total GFA of approximately 9,735 sq.m. and public facilities with a total GFA of approximately 759 sq.m. The Group has commenced the construction work of Li Yuan Project in mid 2012 and expects to complete the development by September 2014.

Property leasing business

The leasing fee income from the Group's property leasing business was approximately HK$52.6 million for the year ended 31 December 2012.

The Group's leasing properties are mainly located in two districts, namely Xingning District (興寧區) and Xixiangtang District (西鄉塘區) of Nanning. As of 31 December 2012, the Group's retail units which were held for the purpose of leasing to independent third parties comprise an aggregate rentable GFA of approximately 23,606 sq.m. in the PRC, of which the aggregate GFA of approximately 17,405 sq.m. in the PRC has been leased out.

Property management and consultancy business

The property management and consultancy service fee income from the Group's property management and consultancy business of approximately HK$19.7 million and HK$5.7 million respectively were contributed to the Group's revenue for the year ended 31 December 2012.

The Group's property management business comprises managing properties that the Group holds in its investment property portfolio, properties that the Group has developed, as well as properties owned or legally used by independent third party property owners or users. The Group's management services include setting property management procedures, providing security, maintaining the properties, landscaping, developing environment protection policies, event planning and consulting services.

These business activities are carried out under 南寧金裕豐物業管理有限公司 (Nanning Golden Yu Feng Property Management Co., Limited*) (an indirect non-wholly owned subsidiary of the Company) (“Golden Yu Feng”) which holds a valid Class 2 qualification allowing it to carry out property management of up to 300,000 sq.m. for each residential property and up to 80,000 sq.m. for each nonresidential property it manages. As of 31 December 2012, the Group derived its property management income mainly from Yu Feng Plaza, Fond England, International Kitchen Supplies Centre and Guangxi International Trade Centre.

For the property consultancy business, the Group provides consultancy services to independent third party property owners or permitted users on sub-leasing or management of their properties. In addition, consultancy services that the Group offers include (i) locating prospective tenants; (ii) determining the market positioning of each property, or each level, or the units within the properties; and (iii) developing featured theme shopping malls, or selecting appropriate tenants. The Group also provides property agency services in respect of sale of properties.

Business Outlook - For the year ended December 31, 2012

The Group was listed on GEM of the Stock Exchange on 14 December 2012. The funds raised from the Listing have helped lay a solid foundation for the future development of the Group.

Looking forward, the Group will continue to engage in the property development and management businesses with emphasis on quality, comfort, and, above all, environmental friendliness. The Group aims to expand its (i) property leasing, (ii) property related management and consultancy, and (iii) property development businesses by application of green technology, including the operation and management of featured theme shopping mall, commercial and residential properties and the development of property projects with a green-focus.

Source: South West Eco (08291) Annual Results Announcement
Chairman LEE Kai Hung Issued Capital (shares) 300M
Par Value HKD 0.1 Market Capitalisation (HKD) 240M
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