Net Profit Surges 40.7% to HK$471.2 Million
Further Strengthens Investment Portfolio to Capture Opportunities Ahead
Financial Highlights
-- Turnover reached HK$1.1 billion
-- Profit attributable to shareholders up 40.7% to reach HK$471.2 million
-- Earnings per share at 53 HK cents
-- To declare a final dividend of 6.8 HK cents per share
-- Total dividend to reach 10.1 HK cents per share
-- Cash and available bank facilities amounted to HK$625 million
HONG KONG, July 19 /Xinhua-PRNewswire-FirstCall/ -- Emperor International
Holdings Limited ("the Group") (Stock Code: 163; OTC: EPRRY) today announced
its annual results for the year ended 31 March 2005. During the year under
review, the Group recorded a turnover of HK$1.1 billion (2004: HK$1.3
billion). Profit attributable to shareholders surged 40.7% to reach HK$471.2
million.
Ms. Vanessa Fan, Managing Director of the Group, said, "We are delighted
to report such outstanding results for last year. As a survivor of the
previous economic downturns, the Group manages to bring in returns for
shareholders through cautious and well-planned expansions."
"Against the background of a recovering property market, the rise in
profit was mainly driven by the increase in rental income and gains from the
revaluation of our existing investment properties and our developing projects
in Hong Kong. Besides, our securities brokerage business also performed
spectacularly during the year, which contributed to the profit surge," Ms Fan
continued.
In view of a satisfactory performance, the Board proposed to declare a
final dividend of 6.8 HK cents per share, which together with the interim
dividend of 33 HK cents per share (or equivalent to 3.3 HK cents after
subdivision of 1 share into 10 shares), leading to a total dividend of 10.1 HK
cents for the year.
Property Development and Investment
This business segment continued to contribute a core revenue and profit
stream for the Group and accounted for 21.6% of total turnover. It accounted
for 88.4% of the Group's operating profit.
During the year, turnover from leasing investment properties was
approximately HK$105 million (2004: HK$76 million), with profit reaching
approximately HK$90 million (2004: HK$60 million). Revenue from sales of
investment properties totalled HK$142 million (2004: Nil), with profit
amounted to HK$29 million (2004: Nil). Contribution from investment properties
revaluation amounted to HK$360 million (2004: HK$269 million).
Property-related operations contributed a significant and steady income,
with total profit amounting to HK$482 million (2004: HK$348 million).
Hong Kong
The Group's Hong Kong property portfolio includes Emperor Group Centre in
Wanchai and Emperor Plaza in Tsuen Wan. Properties acquired during last year
include:
1. Shop D, G/F, Cheong Kee House, No. 4 Sai Yeung Choi Street South and
Nos. 21, 21A & 21B, Soy Street, Kowloon. (Total gross area: 1,000 sq
ft)
2. G/F, 1/F, 2/F & 3/F, No. 8 Russell Street, Causeway Bay. (Total gross
area: 22,643 sq ft)
3. A residential site at various lots in DD210, Sai Kung. Town planning
approval has recently been given and a land exchange with Government
will be contemplated. (Site area: 66,900 sq ft)
Mr. Donald Cheung, Property Department Director of the Group, said, "The
total value of the Group's investment properties in Hong Kong exceeds HK$6
billion, with an aggregate gross floor area of over 800,000 sq. feet. These
properties include shops, offices, apartments, industrial buildings and
hotels. Annual rental income from investment properties is nearly HK$150
million. We also expect future increment in rental income upon renewal of
existing tenancies at expiry."
The Group has recently completed the basement excavation and foundation
works of Lido Plaza at Repulse Bay, which has a total gross floor area of
151,000 sq ft (excluding carpark). The commercial complex redevelopment will
be a key property project of the Group.
China
The Group plans to start later this year the superstructure work of its
property project in Xiamen, the PRC, i.e., Phase 2 of Riverside Garden. The
project is scheduled to complete by the end of 2006. With the popularity of
Phase 1, the Group expects Phase 2 of the project will also bring in good
returns after its completion.
Macau
Subsequent to the year under review, the Group acquired the following two
high-quality properties in Macau in July 2005.
1. G/F, Portion B, 63- 69 Avenida de Infante D. Henrique, and Shop C2 on
G/F, No. 5 Rua Dr. Pedro Jose Lobo. (Total gross floor area: 1,600 sq
ft)
2. G/F, 1st-4th Floors of Block A, No. 201-209 Avenida De Almeida Ribeiro,
No. 1-3 Patio Das Esquinas. (Total floor area: 15,788 sq ft)
Mr. Cheung said, "At present, our Group has a strong property portfolio at
prime locations in Hong Kong and China. Further to this, we have already
stepped into Macau's increasingly popular and prosperous property market by
acquiring two high-quality properties at the busiest and most valuable
commercial strip in the city. In future, we will continue to look for and
invest in properties with great potentials so as to further enlarge and enrich
our landbank."
Securities and Brokerage Services
During the year, this business segment accounted for 6.4% of the Group's
total turnover. The results were satisfactory with turnover amounting to
HK$73.0 million (2004: HK$75.8 million) while profit rose by 100.4% to HK$46.7
million (2004: HK$23.3 million). The outstanding performance was partly due
to the improved market sentiment during the year, with active investment
activities taking place in the economy.
Besides offering extensive brokerage and trading services of Hong Kong
stocks, the Group also provides margin-financing services and a full range of
investment products, such as futures and options trading to both retail and
institutional clients.
Hotel and Restaurant Operations
The performance of this business segment had improved impressively and
accounted for 6.8% of the Group's total turnover. The hotel and restaurant
operations -- namely The Emperor (Happy Valley) Hotel and Chiu Chow Dynasty --
saw turnover grew 88.6% to HK$78.3 million (2004: HK$41.5 million). Loss was
significantly narrowed down to HK$1.9 million (2004: loss of HK$5.9 million).
The improved performance was due to increasing consumer spending driven by
a recovered local economy and the influx of mainland tourists as a result of
the relaxation of the PRC individual traveller scheme. The hotel with
refurbished guest rooms was well received by the Group's corporate clients and
travel agents. Room occupancy and room rates, as a result, had increased by
14.1% and 34.0% respectively over the previous year.
With the opening of Hong Kong Disneyland in September this year, the Group
expects more mainland and overseas tourists to visit Hong Kong. In view of
this, the Group will further upgrade its hotel facilities and catering
services to enhance its competitiveness in the industry.
Wholesaling and Retailing of Furniture
The Group's furniture wholesaling and retailing business, Ulferts, had
turned its business around with a profit of HK$1.9 million (2004: Loss of
HK$7.6 million) and an increase in turnover by 40.8% to $137.9 million. In
June 2004, it opened a new @Home store in Shatin. Since its opening, the
store has been well received, especially among young customers.
Publishing and Printing
This business segment, accounting for 36.8% of total turnover, includes 7
magazines published by the New Media Group, the Chinese-language newspaper
Hong Kong Daily News and an offset printing operation.
Despite the newspaper recorded a loss due to keen competitions of the
newspaper market and the rising paper cost last year, the magazine operations
saw a profit surge and expansion in marketing share. The period between
January and March is the traditional low season in the second half of the
financial year, however, Oriental Sunday, The Weekend Weekly, New Monday,
Fashion and Beauty and The Economic Digest were able to post together a 29%
growth in advertising income compared with the last corresponding 3-month
period.
Marine Products
The trading of glass eel benefited from a growing demand last year,
leading to a splendid rise of 258.4% in sales to HK$158.9 million (2004:
HK$44.3 million). Profit also surged 85.4% to $3.3 million (2004: $1.8
million).
Mr. Bryan Wong, Managing Director of the Group concluded, "As an
established conglomerate in Hong Kong, our Group possesses solid foundations
in our diverse business areas. Property investment and development will
remain our core business and we will actively seek to further enrich our
existing portfolio by acquiring high-quality properties in the Greater China
Region. Apart from property projects, we will also proactively look for
opportunities to further improve the performance of the Group's other business
segments. Backed by the improved economy and our Group's rich experience, we
are confident of our prospects and are poised for capturing the lucrative
business opportunities ahead."
About Emperor International Holdings Limited
Emperor International Holdings Limited is an investment holding company
and its subsidiaries are principally engaged in property development and
investment, financial and brokerage services, newspaper and magazine
publishing, furniture wholesaling and retailing, hotel operation as well as
trading of marine products. The Company's shares are available in the United
States through American Depository Receipts.
For Press Enquiries:
Emperor International Holdings Limited
Sidney Luk
Tel: +852-2835-6715
Fax: +852-2893-5327
Email: sidneyluk@emperorgroup.com.hk
Website: http://www.emperorgroup.com.hk
SOURCE Emperor International Holdings Limited
 back to top
Related links:
http://www.emperorgroup.com.hk
CONTACT:
Sidney Luk of Emperor International Holdings
Limited, +852-2835-6715, or fax, +852-2893-5327,
sidneyluk@emperorgroup.com.hk
|
