China Logistics Property Announces 2019 Annual Results
Revenue significantly up by 22.3%
Core Net Profit increases by 53.0%
- Core operating performance was positive across the board, with revenue up by 22.3% to RMB713m; gross profit amounted to RMB547m, up by 26%; core net profit up by 53.0% to RMB455m
- Occupancy rate reached 90.3%, which is 2.4 percentage points higher than overall market occupancy rate. At present, Gross Floor Area (GFA) of investment projects is approximately 4.3 million sq.m and GFA of land held for future development is approximately 5.2 million sq.m.
- Demand in China's premium logistics facilities leasing market continued to demonstrate a strong increase in momentum. The Group plans to strengthen its nationwide network.
- Steadily developed investment fund projects and gradually realized a diversified income and asset-light model.
HONG KONG, March 30, 2020 /PRNewswire/ -- China Logistics Property Holdings Co., Ltd ("CNLP" or the "Company", together with its subsidiaries, the "Group"; stock code: 1589), a leading provider of logistics facilities in China, today announced its unaudited annual results for the period ended 31 December 2019.
In 2019, the Group's revenue increased by 22.4% year-on-year to RMB 713 million. Driven by an increase in the number of logistics parks in operation, and an overall increase in the levels of rent and management fees for the Group's logistics park projects in operation, total Gross Floor Area (GFA) in operation increased accordingly. Gross profit increased by 26% to RMB 547 million. Gross profit margin rose 2.2 percentage points year-on-year to 76.7%. Profit for the year was RMB 423 million. Core net profit (adjusted for earnings before interest, taxes, depreciation, and amortization, or EBITDA) increased by 53.0% to RMB 455 million, as a result of the Group's nationwide expansion as well as the economies of scale it achieved through expansion. As a percentage of the Group's revenue, core net profit was 63.8%.
- During the period under review, the Group's occupancy rate reached 90.3%, which was 2.4 percentage points higher than the overall market occupancy rate. The Group now has approximately 4.3 million sq.m. of GFA of investment projects and approximately 5.2 million sq.m. of GFA of land held for future development.
The Group will continue to strive to develop into one of the largest providers of premium logistics facilities in China and focus on more economically developed regions, such as the Guangdong-Hong Kong-Macao Greater Bay Area, Yangtze River Delta economic zone, the Bohai economic zone and the Pearl River Delta economic zone, as well as other selected provincial and logistics node cities.
Mr. LI Shifa, Chairman, CEO and President of CNLP, said: "The Group will take advantage of the country promoting the construction of the Greater Bay Area to actively seek new investment opportunities in the region, with the aim to expand our coverage in China. We will continue our efforts to achieve the goal of developing the Company into the largest provider of premium logistics facilities in China and maintaining our leading position as a premium logistics facilities provider in China."
The Group's investment fund is moving forward in 2020. On March 26, 2020, the Group announced the establishment of the second phase of the fund with LaSalle Investment Management Asia Pte. Ltd., jointly investing RMB 663 million to operate China Logistics' warehousing projects. The Company has taken on the role of asset manager to provide project and property management services for the projects. The steady development of the investment fund business helps the Group to optimize its capital structure and helps it gradually realize diversified income and asset-light operation models.
About China Logistics Property Holdings Co.,
CNLP was one of the early entrants and pure-players in China's logistics facilities market, with major external shareholders including RRJ Capital, JD and Sino-Ocean. Since 2003, the Group has participated in the development, operations and management of premium logistics facilities. With 17 years' experience, the Group has developed a highly effective and return driven business model. As of 31 December, 2019, its prime logistics facilities portfolio reached 4.3 million sq.m., with 176 logistics facilities operating in 37 logistics parks, located in logistics hubs in 18 provinces and centrally administered municipalities. The Group's extensive geographic reach and premium logistics facilities create a strong "network effect" that allows tenants to expand across its logistics facilities network as their businesses grow. On 11 March 2019, the Group has been selected by the Shenzhen Stock Exchange to be a constituent stock of the Shenzhen-Hong Kong Connect, the same date as the Company becoming a constituent of the Hang Seng Composite Index.
For further information about CNLP, please visit the Company's website at: http://www.cnlpholdings.com/
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