Taipei May 29 - Continental Holdings Corp. (CHC, TWSE stock symbol 3703) today reported its financial results for 2013 and operational plans for 2014. In 2013, CHC and its subsidiaries posted consolidated revenue of NT$17.982 billion and net profit of NT$938 million, translating into earnings per share of NT$1.09. The firm plans to distribute cash and stock bonuses of NT$0.5 a share.

 

“CHC was able to keep 2013 net profit at above NT$900 million,” said Ken Hung, CHC Chief Executive Officer. “Due to the adoption of the IFRS accounting practice, CHC’s consolidated revenue may be more volatile than before, varying to project completion. Yet the two CHC subsidiaries, Continental Engineering Corp. (CEC) and Continental Development Corp. (CDC), posted project completion rates of 80% and 93%, respectively, again providing stable incomes for CHC.”

 

Upon closer examination of CHC’s 2013 revenue distribution, construction continued to be a major source of income, accounting for 87.35% of total turnover; real estate development, meanwhile, accounted for 12.65% and mostly came from CDC. As IFRS requires that only completed projects be accounted for, CDC listed NT$1.9 billion as 2013 revenue, and turnover is expected to grow. In terms of operational goals, CDC will continue to build itself as an outstanding residential developmental brand and adopt a land development strategy that primarily entails the buyout of development projects, supported with joint constructions, to boost the firm’s land reserves for development in the short-term. The firm will also actively participate in urban renewal projects and large-scale developmental projects to increase land reserves for development in the long-term.

 

Construction revenue mostly came from CEC and its subsidiaries. Construction revenue totaled NT$15.7 billion, mostly from two sources: MRT projects and building construction projects, which accounted for 45.85% and 33.51% of the total, respectively. Despite economic bearishness, revenue from Taiwan area rose noticeably due primarily to the CEC brand, which attracted outstanding construction companies and helped increase projects outsourced to CEC. For 2014, it is hoped the Taiwanese market will see increased business, project consolidation, and balanced growth in earnings. As for overseas markets, CEC will strive to increase bidding success rates in each region (India, Hong Kong and Macau) and concentrate on management, control, and execution of projects. The focus for Malaysia will first be on ongoing projects.