On 26 August, CR Land Limited announced its interim results for the six month ended 30 June 2016, and its plan to acquire the rights and interests of the Shenzhen Bay project and various car park projects from its parent company, China Resources (Holdings) Co., Ltd.

During the first half of 2016, CR Land posted consolidated revenue of HK44.52 billion, up by 19.9% year-on-year; profit attributable to the owners of the Company including the revaluation gain from investment properties was HK7.68 billion, up 19.1% year-on-year; core profit attributable to the owners of the Company excluding revaluation gain from investment properties reached  HK6.30 billion, up 25.5% year-on-year; and consolidated gross profit "Arial",sans-serif'>During the reporting period, CR Land recorded contracted sale of RMB 55.57 billion, with a contracted gross floor area of 4.296 million quare meters, up by 50.2% and 32.1% year-on-year, respectively. Revenue from investment properties including hotel operations reached HK3.53 billion, up 13.6% year-on-year. As of the first half of 2016, the total gross area of investment properties operated by CR Land reached 5.162 million square meters, among which, there were 12 MIXc malls, 7 Hi5/MIXc One Malls, and two other shopping centres in operation, a scale that tops the industry.

As of 30 June 2016, CR Land has already locked in  contracted sales of HK$92.93 billion that are subject to recognition as development property revenue in 2016 (including revenue booked in the first half of 2016), comparable to the reported full year development property revenue of HK$93.54 billion in 2015.

As CR Land continues to maintain its prudent financial policies, as of 30 June 2016, the company’s total interest-bearing debt ratio was 38.4%, slightly higher than the 36.6% by 2015 year-end; net interest-bearing debt ratio was 27.9%, remaining at relatively low levels in the sector. During the reporting period, Standard & Poor’s, Moody’s and Fitch maintained the Company’s credit rating of “BBB+/stable”, “Baa1/stable” and “BBB+/stable”. The solid financial position facilitates the Group with diversified funding channels at low cost.

On the same day, CR Land announced its proposed acquisition of interests in the Shenzhen Bay and car park projects from China Resources Group, with equity consideration of RMB6.24 billion, debt consideration of RMB2.56 billion, and total consideration of RMB8.8 billion. CR Land will pay for the acquisition using internal resources.

This fund injection not only helps increase CR Land’s land reserve in tier-1 and quality tier-2 cities by 700,000 square meters, it will also bring instant contribution to CR Land’s contract sales and cash flow. The Shenzhen Bay project is a multi-functional, integrated development project, with a quality location, has been well received since launch, and has been highly recognised by the market. The car park project is an important step taken by CR Land in its diversification efforts, and will help CR Land develop new sources of revenue and profit growth. This fund injection represents yet another implementation of China Resources Group’s incubation strategies, reflecting China Resource Group’s long-term support for CR Land.