DIT Group Limited (0726.HK)

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DIT Group announced positive profit alert and expected over 40% growth in profit after tax.

source
http://dit.aconnect.com.hk/document/press/pressEN_20210218.pdf

18 February 2021

DIT Group Limited (“DIT” or the “Group”, SEHK stock code: 726), an innovative high-tech company specializing businesses in the whole value chain of prefabricated construction in the People’s Republic of China (“PRC”), is pleased to inform the shareholders (the ‘‘Shareholders’’) and potential investors of the Group that, based on a preliminary assessment and review of the unaudited consolidated management accounts of the Group for the year ended 31 December 2020, the Group expected over 40% growth in profit after tax to approximately HK$160.0 million during the year. This was primarily attributed to an increase of revenue of over 58% to approximately HK$1,105.7 million for the year ended 31 December 2020 as compared to the revenue for the year ended 31 December 2019; along with an increase of gross profit margin of prefabricated construction components and units from approximately 24.0% in 2019 to approximately 29.5% in 2020; and an increase of approximately 157.4% to approximately HK$93.7 million in the revenue generated from technology licensing and consultancy business.

DIT Group’s chief executive officer and executive director Guo Weiqiang said, “The Group quickly prepared itself as ‘wartime status’ to fight against the sudden Pandemic in 2020, thus showing a good momentum of development. The Group has been forging ahead with its business development and growing rapidly since it joined the family of the CCRE Group. It has been producing encouraging results.”

Guo continued,“The Group’s operating results grew rapidly in 2020, in which the full-year production volume of prefabricated construction components increased by 66% and sales volume rose by 72%, respectively, year-on-year. Also, the Group is now focusing on the development of asset-light strategy, which includes providing landscaping and interior decoration services. Meanwhile, the Group successfully established five green construction industrial parks, as well as completed and put six green construction industrial parks into production in 2020. Furthermore, the Group signed strategic cooperation agreements with a number of renowned enterprises in 2020, including JD.com Group, Jinke Property Group, Sunriver Holdings Group and Jujiang Construction Group, etc. The collaborations with the well-established companies have resulted in synergies which allow the Group to further expand its business and build up its business presence nationwide. This has also enhanced the Group’s capabilities of running businesses across the whole value chain of prefabricated construction and provided a stable source of orders for this year.”

“DIT Group is committed to becoming a leading solution provider for smart buildings. In 2020, the Group announced its new ‘Intelligent Construction of Home’ strategy, which aims at creating an innovative model of running businesses in the whole value chain of prefabricated industry with synergy. The Group devotes itself to technological innovation along the whole value chain in such businesses as construction of smart residential buildings and promoting the development of the prefabricated construction industry. Also, the Group has always adhered to the development strategy of ‘leading in technology’, we have the world-leading six core technology systems in the industry, and mastered core technologies such as BIM, Internet of Things, big data, and artificial intelligence in the field of smart buildings. Meanwhile, the Group also has more than 1,700 patents of various types, and the number of patents has been ranked first in the domestic industry for five consecutive years.”

“Looking ahead, the Company will uphold the mission of ‘creating a promising life with intelligence’. Supported by total gross floor areas sold and properties delivered by Central China Real Estate and Central China Management, which ranked top 10 in the PRC, along with over 100 million square meters of decoration opportunities from Central China New Life, the Group will be initiating newly developed digitalized business platforms, achieving new growth in the future.”, Guo concluded.

The Group is still in the process of preparing and finalizing the consolidated annual results of the Group for the year ended 31 December 2020. and such results are subject to audit by the Company’s auditor and review by audit committee of the Company. The annual results announcement of the Company for the year ended 31 December 2020 is expected to be published by the end of March 2021.

About DIT Group Limited
Headquartered in Changsha and Zhengzhou China, DIT Group Limited is an innovative high-tech enterprise that specializes in businesses throughout the entire value chain of prefabricated construction (PC). The company is listed on the main board of the Stock Exchange of Hong Kong Limited (stock code: 726.HK), and is also the first listed company in China’s PC industry. The Group promotes the modernization of construction industry, and its businesses cover the entire value chain of the PC industry, including R&D, PC components manufacturing, franchise and consultation of PC plants, and manufacturing of intelligent PC equipment. The Group has already set up several smart PC equipment plants nationwide. It runs fifteen self-operated PC plants and several plants owned and operated by franchisees. By adopting the world’s first business model of combining engineering, manufacture, procurement and construction (EMPC), which is created by Drawin Group, DIT Group has been widely recognized by its clients for its technology and products. DIT Group has green construction industrial parks in over 45 cities in 22 provinces nationwide, providing service for projects under construction with a total site area of 6 million square meters in China.

For further information, please contact:
DIT Group Limited
Ms. Vanessa Sun
Senior Investor Relations Manager
Email: [e-mail]

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