China Resources (Holdings)

China Resources Land income soars 62.9pc

PUBLISHED : Saturday, 15 September, 2007, 12:00am
UPDATED : Saturday, 15 September, 2007, 12:00am

China Resources Land, a Hong Kong-listed red-chip developer, posted a 62.9 per cent growth in its first-half net profit, thanks to the increase in property prices and completed projects.

Net profit rose to HK$574 million for the first six months of this year from HK$352 million a year ago. Turnover climbed 80.9 per cent to HK$1.81 billion from HK$1 billion.

However, gross profit margin dropped to 38.3 per cent from 40.7 per cent a year earlier, crimped by the land appreciation tax, which jumped to HK$95 million from HK$16 million.

China Resources Land booked revenue of HK$1.28 billion from property sales in the first half, up 113 per cent from a year ago. It sold a total gross floor area of 157,686 square metres - an increase of 132 per cent.

Managing director Wang Yin said his company planned to book revenue from the sales of a total gross floor area of about 620,000 square metres for all of this year.

'About 75 per cent of the [targeted] gross floor area was sold from January to August,' he said.

China Resources Land reaped 2.01 billion yuan from the contract sale in the first half, up 32.1 per cent from a year earlier.

The company, which has a land bank of 10 million square metres in gross floor area, and its parent China Resources Holdings together plan to invest 10 billion yuan in land acquisitions this year.

Mr Wang said the two firms had already spent 8.8 billion yuan, including 4.2 billion yuan by China Resources Land for six development sites.

Despite a jump in mainland land prices in recent months, Mr Wang said China Resources Holdings may inject development sites into the listed firm.

China Resources Land declared an interim dividend of 2.4 HK cents per share, compared with 2 HK cents per share a year ago.

The company's shares rose 0.69 per cent to close at HK$14.52 yesterday.