 2015-03-31 |
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Diversified Asset Development Boosts Revenue
March 30, 2015
YC Group President Li Zhixian announced that this year, in addition to planning the sale of the land and buildings in the Linkou area, the group will see increased revenue from completed construction projects by Wangzhou Construction in Linkou and Xinzhong. These will contribute to revenue in the current and next year.
Furthermore, following the renovation of the Linkou motel, the group plans to transform its buildings on Chengde Road and Chongqing into business and backpacker hotels in the second half of this year, diversifying its offerings.
Li Zhixian revealed that considering long-term planning, the group will seek opportunities to restart land and building acquisitions, focusing on the Greater Taipei area. They have currently identified two asset targets near Taipei Botanical Garden and Dazhi Shijianjia. If these acquisitions proceed smoothly, future projects will focus on two-bedroom and 30–40 ping residential developments.
Li Zhixian pointed out that Wangzhou Construction, with a capital of NT$2 billion, is a mid-sized construction company. The "Wangzhou More" project in the Xinzhong sub-central area has a total sales value of NT$1.2 billion and has achieved 60% sales, with units scheduled for delivery throughout the year, boosting YC's revenue and profits.
Wangzhou Construction also has three ongoing projects. Among them, the "Linkou Wangzhou Extreme" project, with a total sales value of NT$5 billion, has also achieved 60% sales, with delivery expected in the fourth quarter of next year, preparing for future operational momentum.
Additionally, Wangzhou Construction has land in Linkou and Xinzhong, totaling 700 and 1,000 ping respectively, and plans to develop residential projects using a build-and-sell model, with a total sales value of approximately NT$7.5–8 billion, adding to revenue recognition in the years ahead.
Li Zhixian mentioned that the building purchased for NT$310 million at No. 38, Section 3, Chongqing South Road, Zhongzheng District, Taipei City, which is close to Taipei Botanical Garden, the National Museum of History, Taiwan Arts Education Center, as well as Jian Guo High School, Taipei First Girls' High School, and the Mandarin Experimental Primary School, will be converted into a small-sized accommodation hotel for international backpackers.
Additionally, the Shilin Chengde Road commercial office building purchased by YC will be converted into the group's first car motel in Taipei once the current lease expires. |
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