Weifang (People’s Republic of China), 10 December 2012
- Phase I of Machinery Market project completely sold
Euro Asia Premier Real Estate Company Limited (JT9; ISIN: VGG3223A1057) today announces its unaudited financial results for the 6 months period ended June 30th, 2012.
- Revenues for the 6 month period under review were RMB Â� 4.62 million (approx. â�� 0.58 m*), as compared to RMB Â� 11 million (â�� 1.4 million) for the first six months of 2011. Revenues were generated through the sale of phase I of the China Agricultural Machinery Marketing Centre project.
- Construction costs for the Machinery Market project during the period amounted to RMB Â� 3.72 million (â�� 0.46 million).
- Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) for the six months under review were RMB Â� – 830,000 (â�� – 104,000). For the first six months of 2011 the company recorded a positive EBITDA of RMB Â� 9.5 million (â�� 1.19 million).
Update of Operations
Patrick P.L. Chan, CEO of Euro Asia, stated, “In the year 2012 our main focus is on finalizing the construction of phase I of the China Agricultural Machinery Marketing Centre. In the first half of the year, we have reached a pre-sales ratio of 96 % for the project, which comprises a total of 4,810 m2, resulting in RMB Â� 4.62 million (â�� 0.58 m) in prepayments. For the remainder of the year, we do not expect any further revenues, as our other projects have not yet reached the pre-sales stage.
The decrease in revenues and earnings compared to the same period last year is explained by the fact that we sold all our rent generating properties. Rental income for the first half of 2011 was RMB Â� 6 million (â�� 666.000).
As construction of phase I for the China Agricultural Machinery Marketing Centre nears completion, the Company is already preparing for Phase II construction, which is scheduled to commence in December. On an area of 67,000 m2 we will build 24 units with a total GFA of 90,000 m2. We expect to achieve a sales price of RMB Â� 6,000/m2 (â�� 649/m2). The second phase of the project is scheduled for completion in the first half of 2014.
Meanwhile, the Company has reached preliminary approvals to acquire an area of 99,000 m2 in the Jiulongjiang Country Park, intended for the construction of Chang Qing International Health City. The necessary permit process is underway and the Company is waiting to receive approvals.”
The details of the financials information, resolutions and agenda of the AGM will be posted on the Company’s website at www.eu-asia.net along with eligibility to attend meeting.
* RMBÂ� 1 = â�� 0.12
About Euro Asia
Euro Asia is a BVI registered company, active in real estate development in the Shandong area of the People’s Republic of China. The Company operates locally through its subsidiaries, jointly owned with SNI, a leading local development company. Generating leasing revenues from a number of commercial properties, the Company has a number of other projects under development. By utilizing its strong local network to banks, political decision makers, land owners and other developers, the Company intends to grow its position in the region prior to moving into other prefecture-level cities.
Schwarz Financial Communication
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