De­vel­oper quick­ens glob­al­iza­tion push

China Daily (USA) - - BUSINESS - By JING SHUIYU jing­shuiyu@

China For­tune Land Devel­op­men­tCoLtd is ac­cel­er­at­ing the pace to gain mar­ket share over­seas, bet­ting big on for­eign coun­tries’ ap­petite for new in­dus­trial cities.

CFLD, the in­dus­try zone de­vel­oper and op­er­a­tor in He­bei prov­ince, said it will help the gov­ern­ments in for­eign coun­tries, such as those from South­east Asia and South Asia, to build and man­age new in­dus­trial cities, as the com­pany’s next pri­or­ity is to pro­mote a glob­al­iza­tion strat­egy.

Yang Kan, prop­erty an­a­lyst at PingAnSe­cu­ri­ties Ltd, re­cently re­it­er­ated the con­vic­tion buy of CFLD stocks, as the com­pany “ac­tively ex­plores the global mar­ket.”

The com­pany’s net in­come rose 22.32 per­cent to 4,603 mil­lion yuan ($679 mil­lion) in the first nine months of 2016 com­pared with that of last year, ac­cord­ing to the lat­est quar­terly state­ment. In the same pe­riod, its rev­enue in­creased 1.82 per­cent year-on-year.

The fast global busi­ness ex­pan­sion, es­pe­ciallya­mong coun­tries along the Belt and Road Ini­tia­tive, has fu­eled CFLD’s strong per­for­mance.

To­date, it has signed­mem­o­ran­dum of un­der­stand­ings with In­done­sian, In­dian, Viet­namese and Egyp­tian gov­ern­ments to work out wide-rang­ing part­ner­ships in the con­struc­tion of in­dus­trial zones or city com­plexes.

In early Oc­to­ber, CFLD se­cured its first pro­ject in Africa — to build a new city in Egypt. Un­der the MOU, CFLD will help the Egyp­tian govern­ment build a new ad­min­is­tra­tive cap­i­tal lo­cated be­tween Cairo and Suez, a city along the Suez Canal.

It is be­lieved that, once com­pleted, the city will serve as the coun­try’s po­lit­i­cal and fi­nan­cial cen­ter and will ef­fec­tively drive the devel­op­ment of the Suez Canal Eco­nomic Belt and the Red Sea Eco­nomic Belt.

To fa­cil­i­tate the over­seas pro­jects in mid Oc­to­ber, the com­pany signed a strate­gic agree­ment with US-based Con­way Inc, a provider of cor­po­rate in­vest­ment ser­vices, to cooperate in at­tract­ing for­eign in­vest­ment and en­ter­prises to CFLD’s new in­dus­trial cities over­seas.

“Con­way has a global net­work of at­tract­ing in­vest­ment, a solid base of client re­la­tions, and a pow­er­ful data­base of site se­lec­tion, which meet CFLD’s im­me­di­ate needs,” Li Shaom­ing, real es­tate an­a­lyst with China In­vest­ment Se­cu­ri­ties Ltd, wrote in a re­search note in late Oc­to­ber.

“CFLD could use the re­sources to land qual­ity in­vest­ments to its over­seas pro­jects, ” Li added.

In ad­di­tion, the com­pany plans to in­te­grate it­self in global in­no­va­tive ecosys­tems through an­gel in­vest­ment.

CFID, in part­ner­ship with a lo­cal tech­nol­ogy com­pany, set up 16 in­cu­ba­tors at global in­no­va­tion hubs such as Sil­i­con Val­ley, Tel Aviv, Ber­lin and Seoul, and raised 1.53 bil­lion yuan to in­vest in 319 star­tups across the world.

China For­tune Land Devel­op­ment Co Ltd’s net in­come in the first nine months of 2016

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