LVGEM (China) Real Estate (00095) Chief Executive Officer and Executive Director Tang Shouchun said, earlier in the Mainland a number of cities experienced property market tightening policy, the market will need time to adapt and trading became quieter. Project Mangrove Luxury Garden in Futian district, originally scheduled for sale in the third quarter, will be extended until the first half of next year to be more prepared for sale. Currently the company is in no hurry to push the sale of new project, as the sales margin level is not low, cash flow is still abundant – it will not affect the results this year.
LVGEM China holds a piece of land at Hong Kong’s Lau Fau Shan Deep Bay Road. Tang Shouchun said that though company has a small scale it can still expand to overseas markets. In the future the company will continue to pay attention to investment opportunities in Hong Kong. Currently, the company also began to seek acquisition opportunities for small and medium-sized projects in the United States, such as the redevelopment of old districts and commercial hotels, etc. Depending on the allocation of assets, it is expected that the proportion of overseas loans will account for about 10% in the next two years and now account for 6% to 7%.
DENG Chengying, executive director of LVGEM (China), pointed out that the proportion of commercial projects will account for less than 20% of the profits in 3 years. However, after the completion of urban renewal projects in Shenzhen and other places, the commercial area will be retained. It is estimated that in 8-10 years, the commercial projects will account for half of the turnover. The parent company in the Pearl River Delta holds 12 million square meters of urban renewal projects, enough for development for 5 years to 8 years. As it has always been the parent company to obtain urban renewal projects and inject them into LVGEM (China) when conditions are met, the company has strong cash flow.
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