0001193125-13-457707.txt : 20131129 0001193125-13-457707.hdr.sgml : 20131128 20131129092306 ACCESSION NUMBER: 0001193125-13-457707 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20131129 FILED AS OF DATE: 20131129 DATE AS OF CHANGE: 20131129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHINA METRO-RURAL HOLDINGS Ltd CENTRAL INDEX KEY: 0001468944 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 000000000 STATE OF INCORPORATION: D8 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-53776 FILM NUMBER: 131249273 BUSINESS ADDRESS: STREET 1: OMAR HODGE BUILDING, WICKHAMS CAY 1 STREET 2: PO BOX 362, ROAD TOWN CITY: TORTOLA STATE: D8 ZIP: 00000 BUSINESS PHONE: (852)23179888 MAIL ADDRESS: STREET 1: SUITE 2204, 22/F SUN LIFE TOWER, GATEWAY STREET 2: 15 CANTON ROAD, TSIMSHATSUI, KOWLOON CITY: HONG KONG STATE: K3 ZIP: 00000 FORMER COMPANY: FORMER CONFORMED NAME: Man Sang International (B.V.I.) Ltd DATE OF NAME CHANGE: 20090723 6-K 1 d635830d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2013

Commission File Number 000-53776

 

 

China Metro-Rural Holdings Limited

(Translation of registrant’s name into English)

 

 

Suite 2204, 22/F Sun Life Tower,

The Gateway, 15 Canton Road,

Tsimshatsui, Kowloon, Hong Kong

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨            No   x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):        

The information included in the Report on Form 6-K is incorporated by reference into the registration statements on Form F-3 (File No. 333-171825 and File No. 333-184774).

 

 

 

Attached hereto and incorporated by reference herein is a press release announcing mid-year financial results, dated November 29, 2013.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: November 29, 2013       CHINA METRO-RURAL HOLDINGS LIMITED
    By  

/s/ Sio Kam Seng

     

Sio Kam Seng

Executive Director and Chairman of the Board,

Chief Executive Officer

EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Press release announcing mid-year financial results, dated November 29, 2013.
EX-99.1 2 d635830dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

China Metro-Rural Holdings Limited

FOR IMMEDIATE RELEASE

CNR Announces its Results for

the Six Months ended September 30, 2013

NEW YORK, (MARKETWIRE) – November 29, 2013 – China Metro-Rural Holdings Limited (the “Company”) is pleased to announce its unaudited consolidated financial results of the Company and its subsidiaries (collectively the “Group”) for the six months ended September 30, 2013.

Major Events:

 

    Commencement of project in Hengyang City, Hunan Province of the PRC

During the period, the Group has commenced a new project in Hengyang City (the “Hengyang Project”) which is focused on agricultural logistics as well as urban rural migration re-development businesses. The planned site area of the Hengyang Project is approximately 2.7 million square meters with corresponding maximum gross floor area of approximately 7.5 million square meters. The Group has already entered into auctions and has acquired 196,606 square meters of land. The Group is also currently in the planning stage and in the process of obtaining various permits for the development of the Hengyang Project. The first phase of construction with total gross floor area of approximately 144,000 square meters is expected to commence in the near future.

 

1


Financial Highlights:

Continuing operations

The Group has two reportable operating segments, agricultural logistics business and rural-urban migration and city re-development business. Our agricultural logistics business is comprised of (1) development, sales and leasing properties of integrated agricultural logistics and trade centers and supporting facilities and (2) property management which engages in the management of developed properties within the logistics platforms. Our rural-urban migration and city re-development business is comprised of (1) servicing and assignments of development rights and (2) development and sales of residential, commercial and other auxiliary properties in new city center districts.

Agricultural Logistics Business

 

    Net revenue generated by the Group decreased from HK$206,579,000 for the six months ended September 30, 2012 to HK$152,471,000 for the six months ended September 30, 2013, representing a year-over-year decrease of 26.2%.

 

    Sales of gross floor area decreased from 35,994 square meters for the six months ended September 30, 2012 to 24,391 square meters for the six months ended September 30, 2013, representing a year-over-year decrease of 32.2%. Gross floor area sold during the period consisted of trade centers of 24,270 square meters (2012: 35,994 square meters). Sales for the six months ended September 30, 2013 also included residential properties of 121 square meters.

 

    Gross profit percentage decreased from 37.1% for the six months ended September 30, 2012 to 35.2% for the six months ended September 30, 2013.

 

    Other income and gains, net were approximately HK$79,092,000 for the six months ended September 30, 2012. Other income and losses, net were a loss of approximately HK$5,680,000 for the six months ended September 30, 2013. Included in other income and (losses)/gains, net, was a government subsidy of HK$11,657,000 (2012: HK$35,027,000) for the six months ended September 30, 2013, representing a year-over-year decrease of 66.7%, a loss of HK$12,623,000 (2012: a gain of HK$52,221,000) arising from fair value changes of derivative components of convertible bonds and warrants. Other income and (losses)/gain, net, for the six month ended September 30, 2012 also included the transaction cost related to the derivative components of convertible bonds of HK$7,156,000.

 

    Selling expenses decreased from HK$32,123,000 for the six months ended September 30, 2012 to HK$13,686,000 for the six months ended September 30, 2013, representing a year-over-year decrease of 57.4%.

 

    Administrative expenses decreased from HK$54,155,000 for the six months ended September 30, 2012 to HK$49,211,000 for the six months ended September 30, 2013, representing a year-over-year decrease of 9.1%.

 

    Finance income increased from HK$512,000 for the six months ended September 30, 2012 to HK$19,943,000 for the six months ended September 30, 2013, representing a year-over-year increase of 3,795.1%. Included in finance income was an interest income on other receivables of HK$19,491,000 for the six months ended September 30, 2013.

 

    Income tax expenses decreased from HK$21,155,000 for the six months ended September 30, 2012 to HK$20,099,000 for the six months ended September 30, 2013, representing a year-over-year decrease of 5.0%. The effective tax rate increase from 39.3% for the six months ended September 30, 2012 to 480.3% for the six months ended September 30, 2013. The increase is contributed to expenses, including losses arising from the increase in fair value of derivative financial liabilities, which were non-deductible for tax purpose.

 

    Net profit attributable to the equity holders of the Company was HK$24,622,000 for the six months ended September 30, 2012. Net loss attributable to equity holders of the Company was HK$20,584,000 for the six months ended September 30, 2013.

Rural-Urban Migration and City Re-Development Business

Since the disposal of the Company’s project in Qiqihar, the Group continues to operate its rural-urban migration and city re-development business through other subsidiaries and no results were generated in the six months ended September 30, 2013 and 2012 from this business.

 

2


Discontinued operations

Rural-Urban Migration and City Re-Development Business – Qiqihar

On November 30, 2012, the Company disposed of its entire equity interest in China Focus City (H.K.) Holdings Limited and, in effect, disposed of its entire equity interest in Qiqihar China Focus City (H.K.) Holdings Limited (Group) Co., Ltd. As a result of the disposal, our Rural-Urban Migration and City Re-development Business – Qiqihar was classified as discontinued operations, which comprised of (1) servicing and assignments of development rights and (2) development and sale of residential, commercial and other auxiliary properties in new city center district of Qiqihar City. As the discontinued operations ceased to operate during the year ended March 31, 2013, thus no results were generated in the six months ended September 30, 2013.

ABOUT CHINA METRO-RURAL HOLDINGS LIMITED

China Metro-Rural Holdings Limited is a leading agricultural logistics platform development and rural-urban migration redevelopment company in China.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are, by their nature, subject to risks and uncertainties. This Act provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information about themselves so long as they identify these statements as forward-looking and provide meaningful cautionary statements identifying important factors that could cause actual results to differ from the projected results. All statements, including statements regarding industry prospects and future results of operations or financial position, made in this press release are forward looking.

Words such as “anticipate”, “believe”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would” and similar expressions may identify forward-looking statements. These forward-looking statements include, without limitation, statements relating to: the Company’s future performance, the Company’s expansion efforts, the state of economic conditions, the Company’s market and the governmental policy. These forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors the Company believes to be appropriate in particular circumstances. However, whether actual results and developments will meet the Company’s expectations and predictions depends on a number of known and unknown risks and uncertainties and other factors, any or all of which could cause actual results, performance or achievements to differ materially from the Company’s expectations, whether expressed or implied by such forward-looking statements.

CONTACT:

China Metro-Rural Holdings Limited—   Investor Relations Department     
Phone: (852) 2111 3815   E-mail: ir@chinametrorural.com     

www.chinametrorural.com

www.nlc88.com

 

3


CHINA METRO-RURAL HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED SEPTEMBER 30

 

     2013     2013     2012  
     US$’000     HK$’000     HK$’000  
     (Unaudited)     (Unaudited)     (Unaudited)  
     (Note 2)              

Continuing Operations

      

Revenue

     19,548        152,471        206,579   

Cost of sales

     (12,667     (98,802     (129,883
  

 

 

   

 

 

   

 

 

 

Gross profit

     6,881        53,669        76,696   

Other income, net

     1,548        12,072        35,621   

Other (losses)/gains, net

     (2,276     (17,752     43,471   

Selling expenses

     (1,755     (13,686     (32,123

Administrative expenses

     (6,309     (49,211     (54,155
  

 

 

   

 

 

   

 

 

 

Operating (loss)/profit

     (1,911     (14,908     69,510   

Finance income

     2,557        19,943        512   

Finance costs

     —          —          (12,570
  

 

 

   

 

 

   

 

 

 

Finance income/(costs) –net

     2,557        19,943        (12,058

Share of losses of an associate

     (109     (850     (3,681
  

 

 

   

 

 

   

 

 

 

Profit before income tax

     537        4,185        53,771   

Income tax expenses

     (2,577     (20,099     (21,155
  

 

 

   

 

 

   

 

 

 

(Loss)/profit for the period from continuing operations

     (2,040     (15,914     32,616   

Discontinued Operations

      

Loss for the period from discontinued operations, net of tax

     —          —          (10,312
  

 

 

   

 

 

   

 

 

 

(Loss)/profit for the period

     (2,040     (15,914     22,304   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the Company

     (2,639     (20,584     14,310   

Non-controlling interests

     599        4,670        7,994   
  

 

 

   

 

 

   

 

 

 
     (2,040     (15,914     22,304   
  

 

 

   

 

 

   

 

 

 

(Loss)/earnings per share attributable to equity holders of the Company during the period

      

Basic (loss)/earnings per share

      

From continuing operations

   US$ (0.04   HK$ (0.28   HK$ 0.33   

From discontinued operations

     —          —        HK$ (0.14
  

 

 

   

 

 

   

 

 

 
   US$ (0.04   HK$ (0.28   HK$ 0.19   
  

 

 

   

 

 

   

 

 

 

Diluted loss per share

      

From continuing operations

   US$ (0.04   HK$ (0.28   HK$ (0.20

From discontinued operations

     —          —        HK$ (0.12
  

 

 

   

 

 

   

 

 

 
   US$ (0.04   HK$ (0.28   HK$ (0.32
  

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of this press release.

 

4


CHINA METRO-RURAL HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED SEPTEMBER 30

 

     2013     2013     2012  
     US$’000     HK$’000     HK$’000  
     (Unaudited)     (Unaudited)     (Unaudited)  
     (Note 2)              

(Loss)/profit for the period

     (2,040     (15,914     22,304   

Other comprehensive income/(loss), net of tax:

      

Items that may be reclassified to income statement

      

Exchange difference on translation of foreign operations

     4,511        35,187        (4,251
  

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

     2,471        19,273        18,053   
  

 

 

   

 

 

   

 

 

 

Total comprehensive income/(loss) for the period attributable to:

      

Equity holders of the Company

      

Continuing operations

     1,651        12,875        20,606   

Discontinued operations

     —          —          (10,312
  

 

 

   

 

 

   

 

 

 
     1,651        12,875        10,294   
  

 

 

   

 

 

   

 

 

 

Non-controlling interests

      

Continuing operations

     820        6,398        7,759   

Discontinued operations

     —          —          —     
  

 

 

   

 

 

   

 

 

 
     820        6,398        7,759   
  

 

 

   

 

 

   

 

 

 
     2,471        19,273        18,053   
  

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of this press release.

 

5


CHINA METRO-RURAL HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

     September 30,      March 31,  
     2013      2013      2013  
     US$’000      HK$’000      HK$’000  
     (Unaudited)      (Unaudited)      (Unaudited)  
     (Note 2)                

Non-current assets

        

Investment properties

     72,401         564,730         553,633   

Investment properties under construction

     1,973         15,393         15,077   

Property, plant and equipment

     13,574         105,876         107,145   

Land use rights

     10,111         78,867         78,407   

Deposit for investment properties

     1,927         15,033         14,738   

Deposit for acquisition of land use rights

     16,420         128,073         125,556   

Interest in an associate

     3,330         25,970         26,298   

Deferred income tax assets

     349         2,724         —     

Restricted and pledged bank deposits

     1,778         13,866         13,594   
  

 

 

    

 

 

    

 

 

 
     121,863         950,532         934,448   
  

 

 

    

 

 

    

 

 

 

Current assets

        

Completed properties held for sale

     55,132         430,033         501,620   

Properties under development

     157,964         1,232,118         931,404   

Land use rights

     281         2,191         2,178   

Deposit for acquisition of land use rights

     82,456         643,153         —     

Trade and other receivables

     49,763         388,155         433,507   

Restricted and pledged bank deposits

     4,605         35,920         35,182   

Cash and cash equivalents

     30,231         235,800         364,539   
  

 

 

    

 

 

    

 

 

 
     380,432         2,967,370         2,268,430   
  

 

 

    

 

 

    

 

 

 

Current liabilities

        

Trade payables, other payables and accruals

     90,659         707,139         383,370   

Receipt in advance

     4,285         33,427         37,469   

Current income tax liabilities

     34,515         269,217         245,569   

Derivative financial liabilities

     41,942         327,145         314,522   

Bank and other borrowings

     73,048         569,772         286,703   
  

 

 

    

 

 

    

 

 

 
     244,449         1,906,700         1,267,633   
  

 

 

    

 

 

    

 

 

 

Net current assets

     135,983         1,060,670         1,000,797   
  

 

 

    

 

 

    

 

 

 

Total assets less current liabilities

     257,846         2,011,202         1,935,245   
  

 

 

    

 

 

    

 

 

 

Non-current liabilities

        

Deferred income tax liabilities

     10,866         84,755         83,090   

Bank and other borrowings

     42,196         329,129         297,271   

Convertible bonds

     42,286         329,830         306,669   

Loan from a non-controlling interest of a subsidiary

     7,538         58,800         58,800   
  

 

 

    

 

 

    

 

 

 
     102,886         802,514         745,830   
  

 

 

    

 

 

    

 

 

 

Net assets

     154,960         1,208,688         1,189,415   
  

 

 

    

 

 

    

 

 

 

The accompanying notes are an integral part of this press release.

 

6


CHINA METRO-RURAL HOLDINGS LIMITED

UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION – (Continued)

 

     September 30,      March 31,  
     2013      2013      2013  
     US$’000      HK$’000      HK$’000  
     (Unaudited)      (Unaudited)      (Unaudited)  
     (Note 2)                

Equity

        

Equity attributable to equity holders of the Company

        

Share capital

     73         573         573   

Reserves

     150,455         1,173,546         1,160,671   
  

 

 

    

 

 

    

 

 

 
     150,528         1,174,119         1,161,244   

Non-controlling interests

     4,432         34,569         28,171   
  

 

 

    

 

 

    

 

 

 

Total equity

     154,960         1,208,688         1,189,415   
  

 

 

    

 

 

    

 

 

 

The accompanying notes are an integral part of this press release.

 

7


CHINA METRO-RURAL HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED SEPTEMBER 30

 

     2013     2013     2012  
     US$’000     HK$’000     HK$’000  
     (Unaudited)     (Unaudited)     (Unaudited)  
     (Note 2)              

Net cash (used in)/generated from operating activities

     (55,692     (434,395     1,169   
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (238     (1,853     (19,318
  

 

 

   

 

 

   

 

 

 

Net cash generated from financing activities

     38,803        302,663        239,079   
  

 

 

   

 

 

   

 

 

 

Net (decrease)/increase in cash and cash equivalents

     (17,127     (133,585     220,930   

Cash and cash equivalents at beginning of the period

     46,736        364,539        343,578   

Effect of foreign exchange rate changes

     622        4,846        (928
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of the period

     30,231        235,800        563,580   
  

 

 

   

 

 

   

 

 

 

The accompanying notes are an integral part of this press release.

 

8


CHINA METRO-RURAL HOLDINGS LIMITED

NOTES TO UNAUDITED FINANCIAL INFORMATION

 

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES

The financial information presented herein have not been audited by an independent registered public accounting firm, but include all material adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair statement of financial information. However, this information is not necessarily indicative of results of any other interim period or for the full fiscal year. The accounting policies and basis of preparation adopted in the preparation of the condensed consolidated income statement, condensed consolidated statement of comprehensive income, condensed consolidated statement of financial positions and condensed consolidated statement of cash flows (collectively the “Condensed Statements”) are consistent with those used in the annual financial statements of the Group for the fiscal year ended March 31, 2013.

 

2. US DOLLAR EQUIVALENTS

The US dollar equivalents of the figures shown in the Condensed Statements are supplementary information and have been translated at HK$7.8 to US$1.0, representing the rate on September 30, 2013 for U.S. dollar in New York for cable transfers in Hong Kong dollars as certified for custom purposes by the Federal Reserve Bank of New York. Such translation should not be construed as representations that the Hong Kong dollar amounts represent, or have been or could be converted into, US dollar at that or any other rate.

 

9

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