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From: Nigel
ArtDate: 5th September 2006
Section: (FILLYABOOTS NEWS RELEASES)
Remote Name: 87.74.114.152
Date: 09/09/06
Time: 16:14
5th September 2006
Asian Growth Properties Limited Interim Results
News Item - Conduit PR
Results for the period ended 30 June 2006
The Company announced today the Group’s results for the period ended 30 June 2006.
Highlights
Total operating revenue of HK$7.4 million (up 26%). Total profit before taxation of HK$5.0 million (up 4%). Net profit of HK$4.4 million (up 12%). Shareholders’ equity as at 30 June 2006 of HK$1,575.2 million. Net asset value per share as at 30 June 2006 of HK$7.24 (51 pence per share). Miscellaneous
The results for the period ended 30 June 2006 included in this announcement are extracted from the unaudited financial statements for the period ended 30 June 2006 which were approved by the Directors on 4 September 2006.
The 2006 Interim Report is expected to be posted to shareholders in September 2006.
For further information, please contact:
Don Fletcher, Chief Executive Officer TEL: +852 2828 3263
Richard Gray TEL: +44 (0) 207 459 3600 Andrew Potts Panmure Gordon & Co
Abigail Singleton TEL: +44 (0) 207 429 6666 Leesa Peters Conduit PR leesa@conduitpr.com / abigail@conduitpr.com
CHAIRMAN’S REVIEW
I am pleased to report a pre-tax profit of HK$5.0 million for the period ended 30 June 2006, an increase of 4% over the corresponding period. Net profit after tax for the period was HK$4.4 million (2005: HK$3.9 million).
During the period, the Group has continued the development of the Wanchai Road and San Po Kong projects. The pre-sale of apartments for both these development projects is targeted to commence within the coming months. Planning works for the development of the Group’s substantial development site at Sha Tin, New Territories continued to be progressed.
The Group’s developments are in progress. As such, the Group’s revenues have been derived from rental, interest and investment income during the first six months of 2006.
The Group’s stated intention is to invest in the property sectors within the Greater Asia region. The Group continues to seek further investment opportunities principally in Hong Kong and China where the Group has a competitive advantage by virtue of the experience of the Board and senior management. The Group has significant cash reserves for this purpose.
The Board does not propose the payment of an interim dividend for the period ended 30 June 2006 and will retain all earnings to finance future growth.
The Board would like to take this opportunity to thank the executive and management team for the execution of the Group’s strategy and their on-going support.
David Mathewson Non-Executive Chairman United Kingdom, 4 September 2006
CHIEF EXECUTIVE’S REVIEW
FINANCIAL SUMMARY
As at 30 June 2006, the Group has property assets of HK$1.618 billion and cash reserves of HK$598.3 million. The Group’s development projects at Wanchai Road and San Po Kong are partially funded by secured bank loans of HK$198 million and HK$386 million respectively. The Group’s third development site at Sha Tin, New Territories is unencumbered. The Group’s retail investment property at Excelsior Plaza is leased, and partially funded by a secured bank loan of HK$19.8 million.
The Group has net assets of HK$1.575 billion, an increase of HK$4.4 million over 31 December 2005, as a result of the net profit retained for the period. Net asset value per share as at 30 June 2006 is HK$7.24 (approximately 51 pence).
THE AGP ASSETS
The majority of the Group’s property assets are located in Hong Kong, and are as listed below:
Wanchai Road, Wanchai
In April 2006, the Group completed the purchase of an adjoining property at 2 Morrison Hill Road for HK$77.2 million, which was financed by an increase in the existing bank debt facility. Upon amalgamation of the two sites, the total gross floor area of the development will increase to approximately 5,100 sq.m. and will incorporate an additional four floors to the existing tower development.
Foundation works have been completed and the superstructure works contract has been awarded. The pre-sale campaign for the project, now known as “The Morrison”, is expected to commence in the fourth quarter of 2006. The development is expected to be completed by the third quarter of 2007.
San Po Kong, Kowloon
The superstructure construction works commenced in April 2006. The development comprises a 48-storey composite building consisting of 304 residential units above a 7-level podium incorporating retail tenancies, a clubhouse and car parks. The Group is planning to launch the pre-sale campaign in early 2007 when pre-sale consent has been obtained from the Government. Construction is expected to be completed by the fourth quarter of 2007.
Sha Tin, Fo Tan, New Territories
Planning works for the development of the Sha Tin project continue. Several master layout plans have been submitted to the Town Planning Board for consideration. The property is currently leased as an industrial site at approximately HK$13 million per annum.
Excelsior Plaza Shop, Causeway Bay
The retail sector in Hong Kong continues to prosper. A new two-year lease has been concluded for the Shop at an annual rental approximately 22% above the prior lease rate.
FINANCING AND TREASURY POLICIES
The two development projects, Wanchai Road and San Po Kong, are partially financed by bank loans. These facilities provide sufficient funding to complete the two projects without any further equity requirements by the Group.
The Group adheres to prudent treasury policies. As at 30 June 2006, all of the Group’s borrowings were raised through its wholly-owned subsidiaries. Currently, borrowings are principally based on floating rate terms.
International Financial Reporting Standards (“IFRS”)
The Group has adopted IFRS and the accounts included in this report have been prepared in accordance with IFRS.
OUTLOOK
The Group continues to focus on the two development projects in progress to ensure that they are completed on time and in accordance with their specifications. Pre-sales campaigns for both developments are to be launched in the coming months. The Board expects that the developments will be positively received by the market.
The Board is intent on growing AGP and the Group will continue to seek investment opportunities within the Greater Asia region and at the present time, more specifically in Hong Kong and China, in order to enhance the overall net asset value of the Group.
Don Fletcher Chief Executive Officer and Executive Director Hong Kong, 4 September 2006
Laurence Read Conduit PR Ltd 3rd Floor 76 Cannon Street London EC4N 6AE United Kingdom Direct: +44 (0) 20 7429 6605 Office: +44 (0) 20 7429 6666 Mob: +44 (0) 7979 955 923 Fax: +44 (0) 20 7429 6699 laurence@conduitpr.com
www.conduitpr.com
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