 2010-11-19 |
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(Reporter Deng Ning) YC (4306) owns 100% of Wangzhou Construction, which operates on a schedule of launching one project per year. Accumulated revenue for the first three quarters reached NT$590 million, with profits of NT$160 million, providing a stable contribution to parent company YC's earnings. This year, the main source of profit has been the "City of Waves" project launched in 2008.
Currently, Wangzhou has three projects: "City of Waves," "Fenghua Garden," and "Yunpin," along with two land parcels in inventory located on Wenhua Road in Linkou and Zhongyang Road in Xinzhuang. The former is expected to be launched mid-next year, while there are no concrete development plans for the latter.
Yunpin, located on Wenhua Third Road in Linkou, was launched in September this year, consisting of 17 units, all of which have been sold out. Designed as a luxury residence, each unit ranges from 125 to 136 ping (approximately 414 to 450 square meters), with average selling prices between NT$30 million and NT$40 million. Construction is set to begin in January next year, with an estimated total sales amount of NT$700 million. Profits will be recognized gradually as construction progresses, and it is expected to be fully recognized by 2012. The land for Yunpin was acquired by Wangzhou five years ago, and its current value has increased more than twofold compared to the acquisition cost. The low cost of land and high selling prices result in a net profit margin of 50%, making it significantly more profitable compared to the typical 20% to 30% margins of general projects.
Fenghua Garden, also launched this year, is located in Zhongshan District, Taipei City. All 19 units have been sold, and it is currently Wangzhou's only project sold after construction. Delivery has not yet occurred, with total sales amounting to NT$350 million, and estimated profits around NT$80 million, expected to be recognized in Q1 of next year.
The main profit contributor this year, City of Waves, was launched in 2008 and is located in Linkou. There are currently nine unsold units, but the project was completed by the end of October, with delivery expected by the end of the year. If the remaining units can be sold in Q4, the estimated total sales amount will be NT$300 million, with profits expected to reach NT$80 million.
Industry insiders estimate that if City of Waves sells out smoothly, it could contribute approximately NT$650 million in revenue and NT$160 million in profits to YC, alongside Fenghua Garden in Q4 and Q1 of the following year.
It is noted that while YC typically launches one project per year, due to the smaller size of Fenghua Garden and Yunpin, both were launched this year. Wangzhou also has a 1,196 ping land parcel on Wenhua Road, with plans to launch a project in Q2 of next year. There is also a 982 ping land parcel on Zhongyang Road in Xinzhuang, but there are currently no concrete development plans for it. |
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