China State Construction International Holdings Ltd. has announced that new contracts awarded for construction projects in Macau totalled HK$5.4 billion in January this year alone.
In a filing with the Hong Kong Stock Exchange yesterday the company announced that new construction contracts awarded in Hong Kong were valued at HK$2.88 billion last month, while those in mainland China were valued at HK$50 million. The combined total value of new contract awarded projects was HK$8.33 billion in the first month of the year.
‘The group recorded an accumulated new contract value of HK$8.33 billion in the month ended 31 January 2015, and hence achieved a 12.3 per cent completion of the full year target of 2015 (which should be no less than HK$68.00 billion),’ the filing reads.
Among the major new contracts awarded last month are the projects for Hong Kong’s MTR exhibition station and the western approach tunnel of the Shatin to Central link. The project will be conducted by a joint venture between the company and Leighton Contractors (Asia) Ltd. and is valued at HK$5.87 billion. ‘As the group has 49 per cent in the joint venture, the contributable contract value to the group is about HK$2.88 billion,’ according to the filing. The project is expected to be completed in 71 months.
In Macau, China State is constructing a residential and commercial development project for Nova City Phase V, the client for which is Nova Taipa Urbanization Ltd., a subsidiary of Shun Tak Holdings. The development project is expected to be completed in 38 months and includes the construction of eight residential buildings.
Currently, the company has cash construction and related projects in progress underway in Macau valued at HK$3.77 billion plus a backlog valued at HK$2.58 billion. In Hong Kong, its projects are valued at HK$19.35 billion, while in mainland China its projects are valued at HK$660 million. Also, in mainland China the backlog of projects in progress is HK$370 million, while in Hong Kong that figure is HK$29.77 billion.
In addition, infrastructure investment in affordable housing for projects in progress is HK$49.93 billion, while infrastructure alone is valued at HK$31.89 billion. The backlog for both these categories is valued at HK$50.1 billion for affordable housing projects and HK$15.26 billion for infrastructure.
The total value of projects in progress by China State is HK$167.47 billion at the end of January, of which the company’s backlog was HK$98.51 billion. This, the company said in the filing with the Hong Kong Stock Exchange, is ‘equivalent to 3.6 times the group’s audited revenue of 2013.’
These figures include the company’s ‘Far East global’ projects in progress although figures for these are only updated quarterly and not monthly, thus the data taken into consideration for the calculation of the total value of projects in progress is that at December 31, 2014. This figure will be updated in the company’s March operating information, when China State also announces figures for the first quarter of the year.