Hsin Chong targets mainland property projects
Hsin Chong Construction Group, a Hong Kong-listed construction company, said it would focus on property development in the faster-growing cities on the mainland.
'By joining the Mission Hills Group, Hsin Chong will couple with the group's network and expand into the real estate market on the mainland,' said David Chu Shu-ho, the chairman of Mission Hills Group and Hsin Chong.
Mission Hills Group - an integrated hotel resort operator that operates the world's largest golf club between Shenzhen and Dongguan - acquired a 59.04 per cent share in Hsin Chong last month.
'We'll help with building our parent's projects such as villas and vacation homes, and also seek development opportunities on our own or jointly with others,' said Wilfred Wong Ying-wai, the deputy chairman of Hsin Chong and an executive vice-chairman and chief executive of Mission Hills Group.
He said the group was targeting mid-range to high-end property projects in fast-growing cities.
Hsin Chong has been involved in property development in Hong Kong and on the mainland. However, this contributed little earnings to the company given the limited opportunities for small developers, said Mr Wong.
He believes property development will be another major income stream in addition to the construction business in the future.
Also, Mission Hills Group had no immediate plans for a listing or injecting assets into Hsin Chong, Mr Wong said.
For the six months to September, building construction and civil engineering contributed a segment profit of HK$36.98 million while property development and rental recorded a HK$11.32 million profit.
Construction and civil engineering accounted for 83.2 per cent of the total turnover while property development and rental took up 3.1 per cent.
Hsin Chong has HK$7 billion worth of construction contracts on its own, or HK$13 billion if some joint-venture projects are included. It has zero debt and HK$600 million in cash.
