 Sino's Comments: Re: Canada Land Ltd ("CDL"): 30 September 1997 Interim Financial Results Attached please find an extract of Canada Land Ltd’s interim results announcement, for your reference. CDL recorded an after tax profit of A$672,000 for the first half of the year, which represents a sharp improvement in profitability compared with the A$949,000 loss recorded in the first half of 1996/97. The Company declared an interim dividend of 0.36 Australian cents. The CDL share price has suffered in recent months following the lack of investor confidence in "Asian stocks" resulting from the current Asian currency crisis. However, we believe that any perceived problems in China have now been fully discounted by the share price. Furthermore, investors should note that the significant achievements being made by CDL:
We believe that CDL represents excellent value on a mid-long term basis at the
current depressed share price of 26 cents. We maintain our strong buy recommendation on
the stock. ASX Announcement: Report to the Australian Stock Exchange Limited Half Year ended September 30, 1997. Recovery in Profitability Continues, 0.36 cents Australian Dividend Declared. The Board of Directors of Canada Land Limited (the "Company) is pleased to announce its unaudited results for the six months ended September 30, 1997, and provide an update on the progress of its various current projects. FINANCIAL RESULTS The Company is pleased to be able to advise shareholders that the Company's recovery in profitability and its ability to pay dividends has continued through the first half of 1997-98. By taking advantage of the dramatic increase in commercial property values in Hong Kong during the second and third quarters of 1997 and continuing to sell residential and commercial space in the Canview Building project in Guangzhou, we can report a Net Profit after taxes of A$672,000 (HK$3.74 million). This compares to a loss of A$949,000 (HK$5.8 million) in the six months to September 30, 1996, and a net profit of A$873,000 (HK$5.299 million) for the whole of 1996-97. It has always been the Company's policy to combine a strong Balance Sheet with the payment of dividends to shareholders, and the Board has therefore declared an interim dividend for the current financial year of 0.36 cents Australian (HK$0.02) per share to shareholders of record as of December 9, 1997, payable on December 19, 1997. Unless otherwise stated all amounts in the attached announcement have been translated into Australian dollars at the rate of A$1 =HK$5.568, the rate prevailing at September 30, 1997. Net Tangible Assets per share of the Company at September 30, 1997 were A$0.72, compared to A$0.66 at March 31, 1997, an increase of 9%. THE PROPERTY MARKET IN CHINA The property market in China continues to show strong expansion as demand for both quality residential and commercial space continues. While much of south east Asia, including Hong Kong, has seen significant turmoil in the property market since the summer, this has not been reflected in China. Many Hong Kong buyers are now looking for long term rather than short term investment in China property, and some overseas Chinese now view investment in China property as a safe haven compared to their own local environments. CURRENT PROJECTS The opening in the summer of this year of the first stage of the Guangzhou subway system has already provided an impetus to the whole of the FangCun area. Shareholders will recall that all the Company's current projects are within a few minutes walk of the largest station on this line. The subway already connects FangCun and the surrounding areas with the heart of Guangzhou mid the final extension across the city to the railway terminus is on target for completion in 1998. THE CANVIEW BUILDING On November 9 the "Topping Out" ceremony of the Canview Building was held, attended by numerous distinguished guests from both Hong Kong and China. Final completion of the building is scheduled for the second quarter of 1998, shortly after the end of the current financial year. As confirmation of the company's continued success in selling commercial space, the
Company is now negotiating with a major Government Agency for a significant amount of the
commercial spaces Interest in acquiring residential units continues to be strong and a number were sold during the first half of this financial year. A recent major property exhibition in Hong Kong, The 97 Real Estate Expo, gave a further boost to sales. Hong Kong buyers also recognise the potential of investing in this and other China property, as well as property in North America, especially southern California, during this short period of uncertainty in some south east Asian markets. WONG TAI SEEN TEMPLE Also on November 9, 1997, the ground breaking ceremony for the Wong Tai Seen Temple took place. After close to eighteen months of planning in cooperation with the local government, plans are now finalised and construction ready to begin. Completion will take approximately one year. Sales of memorial plates are scheduled to begin in the next few weeks and already strong interest has been shown in Hong Kong and elsewhere in acquiring these. THE COMPANY'S ACTIVITIES IN THE HONG KONG PROPERTY MARKET Shareholders will recall the Company's announcement dated June 17 regarding the acquisition of further investment property in Hong Kong. Shortly thereafter the Company took the view that the market was peaking before a short period of instability and decided to dispose of approximately 80% of its acquisition. This it did at a significant profit which has been included in the results to September 30, 1997. The remaining 20% of the property has been retained as a sales display showroom for its projects in China. OUTLOOK The Company expects the second half of the year to show further substantial improvement in profitability as the Canview Building is completed and sold and sales also begin of the memorial plates in the Wong Tai Seen Temple.
W. S. L. Yip
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