CHEUK NANG (HOLDINGS) LIMITED
(Stock Code: 131)
INTERIM REPORT
FOR THE SIX MONTHS ENDED 31/12/2022
CHEUK NANG (HOLDINGS) LIMITED
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
CHAIRMAN STATEMENT
RESULTS
I herewith announce that the unaudited consolidated loss after taxation for the six months ended 31 December 2022 of our Group is HK$18,000,000 as compared with 2021: HK$115,334,000 as set out in the unaudited condensed consolidated income statement which has been reviewed by the Company's audit committee.
The Directors resolved the payment of an interim dividend of HK1.75 cents per share as compared the interim dividend of 2021: HK1.5 cents.
REVIEW OF OPERATIONS
Hong Kong Properties
The fifth wave of Covid-19 infections, the worsening global economic environment and higher financing costs weighted on Hong Kong's economic performance in 2022, dragging the city into its second recession in three years. Economic and pandemic- dampened local consumption demand over the year, although a mild improvement was seen in second and third quarter of 2022 following the gradual relaxation of social distancing regulations and support from the second phrase of Consumption Voucher Scheme.
The progress of our projects is as follows:
One Kowloon Peak, No. 8 Po Fung Terrace, Ting Kau, Tsuen Wan
Phase 1 has been obtained Occupation Permit which consisted of 49 residential units, out of which 10 units are sold and 20 units are rented. Phase 2 consisted of 5 deluxe residential villas and Clubhouse Facility. The whole development provides 70 no. of car parks. The Occupation Permit of Phase 2 was obtained on 28 July 2020. The application for Certificate of Compliance of the whole development was submitted in August 2020. Our architect and our staff have closely following up with the government officers but the issuance of the Certificate of Compliance is still pending.
Villa Cecil Phase II, 192 Victoria Road, Pokfulam
The occupancy rate maintained at 50%.
Villa Cecil Phase III, 216 Victoria Road, Pokfulam
The occupancy rate of the two blocks has reached 60% which contributed good rental income to the Group.
Cheuk Nang Lookout, 30 Severn Road, The Peak
The renovation of the two villas (Villa Begonia and Villa Crocus) to enhance the quality is completed.
New Villa Cecil, 33 Cheung Chau Sai Tai Road, Cheung Chau
Over 70% of the villas in Phase 1 are leased out. The construction work of Phase 2 and the overall site improvement work are in progress and nearly completed.
China Properties
China has abandoned the "zero Covid" policy in the fourth quarter of 2022 and the re-open of the borders between China, Hong Kong and Macau in January 2023. We believe the demand for properties in The Greater China Areas and its surroundings will gradually become more steady. China authority has announced the industrial PMI index raised 3.1% in January. The non-industry PMI index however raised more up to 12.8%.
Cheuk Nang Garden
Longhwa, Shenzhen
There is no sale transaction of Cheuk Nang Garden was recorded during the year 2022. The good news is that a new sales campaign will be launched again during 2023 in order to start new sales profit for our Group.
Cheuk Nang • Riverside
Yue Hang Qu, Hangzhou
The construction of the development is completed and ྌ᜕ϗ was approved.
Macau Properties
The Macau Government has awarded six new Gambling Licenses in December 2022 which will come into effective on 1 January 2023. With the new gambling operators, gambling business will bring new feature to the Macau tourism industry. Following the fully re-open of the border between Hong Kong and Macau together with the Chinese New Year in January 2023, the tourism industry boosted upward the atmosphere of the entire society.
Golden Cotai No. 1
Estrada de Seac Pai Van, Coloane
The company has submitted an application for land renewal through a local lawyer in Macau in April 2021. According to the lawyer's report, until now, the DSSOPT is still making a proposal to suggest the director will submit to the Chief Executive to grant the contract for change of land use and at the same time grant lease renewal for ten years. The Public Works Bureau has confirmed that the change of land use is consistent with the use stipulated in the "Macau Special Administrative Region Urban Master Plan".
Malaysia Properties
Despite the Covid-19 pandemic, the reopening of the international border stablized the economy and Malaysia enjoyed steady economic growth in 2022. While the expectation of interest rates hikes by US Federal Reserve in 2022 has caused concern for emerging markets such as Malaysia, the Ringgit is expected to remain robust and is well-positioned to withstand rate hikes due to the sizeable trade and current account surpluses, and strong projected economic growth.
Phase I "Parkview"
Lot 1359, Section 57, Lorong Perak, Kuala Lumpur, Malaysia
The occupancy of the serviced apartments currently is 50%, we will upgrade the property in order to improve the occupancy.
Phase II "Cecil Central Residence"
Lot 11385 and 11386, Section 57, Lorong Perak, Kuala Lumpur, Malaysia
The amended Development Order has been approved. New application for approval of the amended building plans was submitted. Due to the poor market situation, the construction plan will be delayed.
INVESTMENT IN BONDS AND HONG KONG STOCK MARKET
The investment in Bond market as at 31 December 2022 was HK$135,402,000. During the period, a total of HK$1,211,000 was redeemed and no Bond was purchased.
The market price of our investment in the Hong Kong stocks as at 31 December 2022 was HK$42,667,000. During the period, a total of HK$1,007,000 stock was purchased and no stock was sold.
OUTLOOK
The much-awaited resumption of quarantine-free cross-border travel between Hong Kong and mainland China commenced in January 2023 which brought benefits to the recovery of the economy, especially the retail sector. This year, following the Hong Kong Government's firm decision to boost the tourism industry, which will benefit the society as a whole, we can expect the pressure on capital and rental values of real estates will ease.
Although the most difficult time may gradually passed, we are still cautious to the upcoming increase in interest rates which will remain pressure on the property market.
DIRECTORS AND STAFF
All our directors and staff for their dedication and contribution to the steady work of the Company during the most difficult period are much appreciated.
As at the date of this report, the Executive Directors are Dr. Chao Sze Tsung Cecil (Chairman), Ms. Chao Gigi (Vice Chairman), Mr. Yung Philip and Ms. Ho Sau Fun, Connie; the Non-Executive Directors are Mr. Chao Howard and Mr. Lee Ding Yue Joseph; the Independent Non-Executive Directors are Mr. Ting Woo Shou, Kenneth, Mr. Lam Ka Wai, Graham and Mr. Sun Dai Hoe, Harold.
By order of the Board CECIL CHAO SZE TSUNG
Executive Chairman
Hong Kong, 28 February 2023
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Cheuk Nang (Holdings) Limited published this content on 23 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 March 2023 07:53:11 UTC.