Major Chinese developer eyes Singapore market
A major Chinese developer is setting its sights on Singapore as it continues to build its overseas portfolio.
Shanghai-based Chiwayland International sees plenty of potential here but is wary of the lacklustre market.
Executive chairman Kevin Qian told The Straits Times yesterday: “We hope to enter the Singapore market in about two to three years’ time but it will still depend very much on whether the returns on investment are totally satisfactory.”
Speaking in Mandarin, Mr Qian added that he is open to undertaking projects with local partners, who would be “more familiar with the business environment and market here”.
Chief financial officer Louis Tai added: “Politically and economically, it’s very stable here. Singapore comes up as a natural choice for us to consider in terms of overseas prospects.”
The firm, which listed here in August via a $399 million reverse takeover of RH Energy, mainly develops residential and commercial property in Shanghai and other parts of the Yangtze River Delta region but is now looking farther afield.
It is working on three apartment projects with commercial space in Brisbane, Australia, in league with local developer Property Solutions.
The developments will cost about A$160 million (S$185 million) in total to complete.
Chiwayland announced yesterday that net profit for the second quarter rose 23 per cent to 29.5 million yuan (S$6 million) while revenue was 94 per cent up at 732.1 million yuan.
Earnings for the six months to June 30 came in at 10.6 million yuan, down 29 per cent on the same period last year, while revenue increased 54 per cent to one billion yuan.
The firm said the revenue increase was mainly driven by two key projects in China that accounted for more than 93 per cent of total sales for the first and second quarters.
Chiwayland shares closed unchanged at 36 cents yesterday.
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