Greentown aims to lift sales target by 26pc

PUBLISHED : Wednesday, 02 September, 2009, 12:00am
UPDATED : Wednesday, 02 September, 2009, 12:00am

The highly geared Greentown China Holdings - which has 2 billion yuan (HK$2.27 billion) in loans due to be repaid this year - said it will raise its full-year contract sales target by more than 26 per cent to 38 billion yuan.

Chief executive Shou Bainian said the company has pulled in 31.5 billion yuan in contract sales in the first eight months, some of which was from joint ventures, exceeding the company's target of 30 billion yuan.

Of the 31.5 billion yuan, he said 19.7 billion yuan was attributable to the company.

Shou said he expected about 62 per cent of the 38 billion yuan contract sales target or 23.5 billion yuan to be attributable to Greentown China. With the stronger-than-expected sales, he said the company had repaid 4 billion yuan of its loan, leaving an outstanding balance of 2 billion yuan to be repayable this year.

Average selling prices for the first eight months rose 14 per cent to 14,500 yuan per square metre, from 12,737 yuan per sq m a year ago.

In June, Greentown said it had a gearing ratio of 140 per cent and 16.1 billion yuan of debt, 6.6 billion yuan of which was repayable this year.

'The explosive growth in transactions in the first half will not be repeated in the second half,' he said. 'Sales volume started to decline in July and August due to seasonal factors and a diminished stockpile available for sale.'