Excluding the effect of the gain of HK$22,377,000 from the disposal of the Group’s investment in Chinacast and the operating expenses, the loss from its operating business narrowed by 61% to HK$4,092,000.
As a result of the Group’s efforts to diversify and bolster its investment portfolio, it currently operates an array of businesses which include ATMs sales and maintenance through TopAsia Computer Limited and its subsidiaries (“TopAsia Group”), real estate related technology services through Acacia Asia Partners Ltd (“Acacia”), real estate consultancy services through Grand Panorama Limited (“Grand Panorama”), and cultivation and conservation business through Huge Value Development Ltd (“Huge Value”).
Mr Tse Michael Nam, Chairman of the Group noted: “We are delighted to report an improved set of performance in the first half of 2007, with the core ATMs management service remaining a major contributor to our revenue and gross profit during the period. We are also actively incubating our earlier investments in the real estate consultancy services to bolster our diversified investment portfolio. In line with the diversification strategy, we have entered into the Licorice cultivation business in the PRC. We believe in the PRC market and will continue to identify and capture exciting agri-business opportunities to create greater value for our shareholders.”
On March 27, 2007, the Group completed the acquisition of Huge Value, a company which holds a contract to provide management and consultancy services for the cultivation of Licorice roots in a 1-million-mu grassland in the Inner Mongolia Autonomous Region. Huge Value is now a wholly-owned subsidiary of the Group.
The planting of Licorice will commence this year, and Huge Value will continue to monitor and increase its plantation.
Licorice root is an important Chinese herbal medicine that is widely used as raw materials for food, candies, cosmetics and other health products. It also has other applications in the production of fire prevention products and construction. Ecologically, the Licorice plants are very effective in preventing soil erosion and land desertification. Concerned with increasing desertisation in the outskirts, the PRC Government strongly supports companies in pursuit of land cultivation and management initiatives.
Huge Value has already engaged a local specialist, Li Hua Agriculture (“Li Hua”), to provide Licorice cultivation services. Li Hua has guaranteed a successful growth rate of not less than 85% of the Licorice planted.
Expectations on the prospect of the latest Licorice cultivation business are high, given the tremendous demand and versatile application of this valuable Chinese herb. This business venture, coupled with the prospective foray into the cultivation of Salix Psammophila through Quest Asia Development Limited, is in line with the Group’s mission to contribute to the nation’s conservation efforts, and at the same time enables the Group to participate in the promising cultivation sector in the PRC.
Salix Psammophila is a type of vegetation in Inner Mongolia. It has a strong, extensive root system. Its branches can also be used to make fiber boards and paper pulps. As most of the raw materials of paper products are imported from overseas, Salix Psammophilia can become a cheaper alternative for manufacturers. The Group believes that demand for Salix Psammophilia will continue to increase in the coming years.
Going forward, the Group expects the cultivation and conservation business to become a major revenue and profit contributor.
The provision of ATMs management services to the banking and financial sectors in the PRC through TopAsia Group benefited from the booming stock markets, which have led to increased workload on counter staff of banks and postal bureaus. This increase in services demand has in turn created an opportunity for TopAsia Group to be more selective in its choice of clients and services contracts allowing it to achieve higher gross profit margins during the six-month period.
Both Acacia and Grand Panorama were affected by the latest real estate policy changes in the PRC. Grand Panorama has developed new businesses, including a mortgage agency for various PRC licensed banks, and the provision of immigration assistance services to potential Mainland customers of foreign property agencies. This business was the main revenue contributor to the division for the first six months of 2007. Grand Panorama will continue to explore new and diverse real estate consultancy business opportunities.
Financial Highlights| Six months ended June 30, | ||
| 2007 | 2006 | |
| HK$ '000 | HK$ '000 | |
| Turnover | 26,982 | 23,916 |
| Profit/(Loss) from operating activities | 4,274 | (16,956) |
| Net profit/(loss) from ordinary activities attributable to shareholders | 3,422 | (17,041) |
| Basic Profit/(Loss) per share (cents) | 0.36 | (3.06) |
About Venture International Investment Holdings Limited Issued by : Through :
Venture International Investment Holdings Limited (HKEx: 61) is a PRC-focused investment company with diversified operations and interests in the country’s cultivation and conservation, banking and finance IT services, as well as real estate related services sectors.
Venture International Investment Holdings Limited
t6.communications limited
Jenny Lee or Angus Ho
email: enquiry@t6pr.com
URL : http://www.t6pr.com