Continental Holdings Corporation (CHC) today (August 6^th) reported financial results of its fiscal year 2021 second quarter. The Company posted consolidated revenue of NT$11,945M in first half 2021, an increase of 33.6% year over year; operating profit was NT$1,061M, a 36.8% increase from the prior year. Net profit came in at NT$803M and grew by 8.2% year over year. EPS for 2021 first half was NT$0.98.

CHC’s consolidated revenue in 1H21 grew by 33.6% compared to the same period in 2020, and all three business segments delivered year-over-year revenue growth this period as well. Real Estate Development Business (Continental Development Corporation) saw the most advancement, mainly due to revenue from completed projects such as 55Timeless and Treasure Garden. Environmental Project Development Business (HDEC Corporation) also grew significantly, mainly fueled by construction of Anping Reclaimed Water Plant and Tongluo Science Park Wastewater Treatment Plant Phase II EPC. Construction Business (Continental Engineering Corporation) saw its growth mostly from Taoyuan MRT Green Line GC01 Section and other private sector construction projects.

CHC’s operating profit grew 36.8% year over year in the first half of 2021 driven by revenue increase. However, cash dividend of NT$56M deferred to the third quarter due to postponed AGM of an investee company resulted from COVID-19 impact, and an one-time income tax benefit of NT$71M last year resulted in only a 8.2% year-over-year net profit increase in first half. Without the impact of aforementioned factors, CHC’s 1H21 net profit booked a significant growth.

CHC remained with a high volume level of backlog, and as of the end of second quarter Construction Business and Real Estate Development Business both increased its backlog quarter on quarter. As of June 30, 2021, backlog for Construction Business came to NT$67.0B, translating to 4.8 times of its revenue for fiscal 2020. Total signed contracts to close of Real Estate Development Business summed up to NT$16.7B, equivalent to 2.9 times of its revenue for fiscal 2020. Contracts on hand for Environmental Project Development Business totaled NT$39.8B and was approximately 12.8 times of its revenue for fiscal 2020.