China Overseas Grand Oceans Group Ltd. (“COGOGL” or “the Group”, Stock code: 0081) announced its 2011 interim results for the six months ended 30 June 2011 (the “Period”) on 2 August 2011.
The Group’s continuing operations reported revenue of HK$2,054.2 million and gross profit of HK$1,075.9 million for the six months ended 30 June 2011. Revenue was doubled while gross profit increased by three folds compared to the last corresponding period. Profit margin strengthened from 26.1% in last corresponding period to 52.4%. Operating profit was HK$1,360.2 million, representing an increase of 8.3 times over the corresponding period last year. The unaudited consolidated profit of the Group and its subsidiaries attributable to the owners of the Group amounted to HK$803.7 million. Basic earnings per share was increased by 10 times to HK87.3 cents.
During the period, the operating businesses of COGOGL experienced continuous rapid development. The Group has succeeded in penetrating into three third-tier cities in PRC including Jilin, Hefei and Nanning. As of 30 June 2011, the Group has operated in nine cities in the PRC with a land bank reached 5.93 million square meters (“sq.m.”).
With the progressive economic transition, China needs to have industrial upgrade and move up the value chain in manufacturing and develops its high value-added service industry for development into a modern society. While China is a vast country with cities at different stage of development, the better developed commercial and industrial businesses from the coastal regions would expand into the inner China mainland areas to deploy untapped natural resources and cheaper labour forces to maintain competitive advantages and operating scales. Since rapid industrialization and urbanization in these inland cities are underway, the Group is dedicated to focus on the high-end property markets in third-tier emerging cities with best investment value and growth potentials. Going forward, the Group will continue to expand its land bank in selective third-tier cities for a sustainable business growth.