Revenue rise lifts Beijing Land income 26pc

Beijing Capital Land, a developer focusing on Beijing and Tianjin, reported a 25.77 per cent rise in net profit for last year as sales surged.

Net income rose to 266 million yuan or 15.05 fen per share from 211.51 million yuan or 12.39 yuan in 2005, the company said in a statement. Sales jumped 79.72 per cent to 2.04 billion yuan from 1.1 billion yuan on a 152 per cent expansion in contracted sales area.

An increase in land development costs dented the firm's profit margin, with operating margin shrinking to 18 per cent last year from 24.4 per cent.

The final dividend was raised to six fen a share from five fen.

The company, which sped up developments last year, said austerity measures introduced by the government to cool the mainland property market would affect it significantly.

Its capital expenditure rose 39 per cent to 2.3 billion yuan while its total asset value for the year increased 53 per cent to 15.4 billion yuan.

The company sold 678,000 square metres of residential, commercial and office properties last year, an increase of 152 per cent. The firm and its subsidiaries completed five development projects with a gross floor area of 332,400 sqmetres.

The central government last year announced a series of policies and regulations, such as increased interest rates, limits on foreign capital entering the real estate market and tighter land supply.

To finance growth, the developer placed 310 million new H shares to raise HK$850 million in October. The company's short-term liabilities rose 97 per cent to 5.2 billion yuan during the year.

The shares, which have fallen 28 per cent this year, closed 1.41 per cent higher at HK$2.88 yesterday before the results announcement.