China Growth Development
China Growth Development, Inc., through Taiyuan Rongan Business Trading Company, Limited, is engaged in the business of leasing units in shopping malls to commercial tenants for retail, wholesale and distribution of clothes, shoes, cosmetics, beddings and other consumer products. The Company was previously engaged in marketing and distributing Teeka Tan suncare products. The Company acquired Taiyuan Rongan Business Trading Company, Limited (TRBT) on May 7, 2008.
See more information about China Growth Development
China Growth Development posts 70pct rise in Q2 profits
China Growth Development posted a 12 percent net revenue increase to US$4.18m year-over-year in the second quarter, with profit rising 70 percent to US$1.67m. The increase was largely driven by the expansion of shopping malls and deferred revenue collected previously from commercial tenants starting to amortize and recognize over the leasing period.
"We are pleased at our progress and ability to deliver solid results this quarter," stated Mr. Sam Liu, COO of China Growth Development Inc. "Our expansion projects have lead the way to increased revenue, and that is a perfect example of our growth strategy succeeding. We are focused on continuing that strategy of growth via expansion, development, and acquisition throughout the third and fourth quarters of 2009."
Management service income collected from the new commercial tenants also increased revenue. In addition, management also increased the management service income per square meter at several clothing mall booths at Xicheng Shopping Mall.
Selling, general and administrative expenses decreased 11 percent to US$2.29m, due to last year's one-time charges incurred from the closing of a reverse acquisition.
The company currently generates its cash flow through operations which it believes will be sufficient to sustain current level operations for at least the next twelve months. In 2009, it intends to continue to work to expand its presence in the commercial real estate market, including the potential acquisition of another shopping mall. With a positive cash flow it expects to acquire an additional 2 shopping centers within the next three years.
