BEIJING, Sept. 5 (Xinhua) -- Listed building decoration companies on China’s A-share market by the end of August, lhad mostly released their business reports for the first half of 2017. The 18 top-ranking listed companies in the first half of this year basically continued their business performance of 2016, but nearly one third still saw a decline in profits, according to China Business Journal on Monday.
In recent years, China has seen the slowdown in the growth of the total output value of the building decoration industry and the diversification of the business performance of major enterprises represented by listed companies.
Meanwhile, a growing number of enterprises have sought transformation and upgrading by extending their industry chain, marching into fields such as Internet home decoration and smart home, and investing in fields such as education, finance and medical health for pluralistic development. Some enterprises have even developed public-private partnership (PPP) business, seized market opportunities from the Belt and Road Initiative, and sought new business growth points.
Nearly 50 percent of the 18 top-ranking listed companies mentioned overseas market operations in their semiannual business reports, but only Shenzhen Bauing Construction Group Co., Ltd. (002047.SZ), Shenzhen Asiantime International Construction Co., Ltd. (002811.SZ) and Sino Great Wall Co., Ltd. (000018.SZ) published their positive growth of overseas business revenues.
Though the building decoration industry is predominated by regional competition with few enterprises conducting trans-regional operations like Gold Mantis, major building decoration enterprises have gone global for overseas development following the implementation of China's Belt and Road Initiative.
According to the statistics of the decoration industry, the overall output value of overseas decoration projects stood at 55 billion yuan in 2016, up 66.67 percent year on year. It is expected to top 100 billion yuan in 2017, up 70 percent year on year.
Of the 18 top-ranking listed companies, Gold Mantis, Asiantime International, Bauing, Yasha, Sino Great Wall and Grandland Group have begun to invest abroad. Gold Mantis has undertaken a couple of projects such as Asem Villa Vientiane, Island Resort in Bahamas, Viceroy Palm Jumeirah Dubai and Garapan Resort in Saipan, intending to build the Singapore-centered Southeast Asia sector and the Dubai-centered Middle East sector as its key projects.
Bauing focusing on building two overseas business platforms: Bauing Indonesia and Ninefold Construction was said to have obtained many overseas orders. Grandland Group plans to improve the business platforms of its Hong Kong and Macao subsidiaries, and intensify the development of the countries along the Belt and Road. Asiantime International disclosed that it had signed design contracts for star hotels in India, Thailand and China's Macao. Sino Great Wall said that it had signed major construction contracts with Southeast Asian countries and regions and had obtained orders worth more than 40 billion yuan as of late June.
Though several listed companies introduced the progress of overseas development in their semiannual reports or through other public channels, only four (Yasha, Bauing, Asiantimes International and Sino Great Wall) of them disclosed their overseas business revenues in their semiannual reports. Yasha posted overseas business revenues of 220 million yuan in the first half of 2016 (accounting for 5.46 percent of its total revenues) in its semiannual report, but registered a decline of 100 percent in the first half of 2017.
Bauing has 17 projects in progress in six countries including the U.S., Malaysia and Myanmar. Proportion of its overseas business revenues in its total in the first half of 2017 increased to 9.83 percent from 3.29 percent registered in the same period of 2016. The proportion of Asiantime International's overseas business revenues in the first half of 2017 surged to 7.16 percent compared to 0.57 percent registered in the same period of 2016. Sino Great Wall registered overseas business revenues of more than 1.4 billion yuan (accounting for the largest proportion) in the first half of 2017, only more than 100 million yuan less than domestic revenues, but the gross profit margin of its overseas business was 10 percent higher than that of its domestic business.
Sino Great Wall noted in its semiannual report that the Belt and Road Initiative created a good opportunity for its overseas business development, and it has kept intensifying overseas market development with the orders and revenues of its overseas projects increasing at a fairly rapid speed every year. (Edited by Hu Pingchao, hupingchao@xinhua.org)
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