Sunac China Holdings announced a 111.8 per cent surge in gross profit to 2.88 billion yuan (HK$3.40 billion) for the year ended December 31, up from 1.36 billion yuan a year earlier. The company said that its gross profit margin grew 15 percentage points to 43.3 per cent.
During the year under review, Sunac China Holdings maintained steady development and realised revenue of 6.65 billion yuan and a sales contract value of 8.33 billion yuan. As a result, the company announced a net profit of 1.54 billion yuan for 2010, a sharp rise of 77 per cent over the previous year.
'The rise in income was mainly due to the enriched product range and the company has shifted its product mix to high-value products like villas and houses,' said Sun Hongbin, chairman, CEO and executive director of the company.
Construction of the group's development projects has commenced as planned despite Beijing's implementation of a series of macro-control measures that made the market environment more rigorous. The gross floor area of delivered projects last year amounted to about 711,521 square metres, according to the company.
Foreseeing that the existing austere market conditions would continue in the coming year, the company has taken the existing situation and future market conditions into full consideration when formulating its plans and objectives, Sun said.
Looking ahead, Sunac China Holdings plans to purchase prime land and continue to develop the sales of large, high-quality integrated residential and commercial properties to target customers.
The company aims to strengthen and consolidate its position in the Bohai rim, south Jiangsu and Chengdu-Chongqing, while increasing its market presence in Beijing, Tianjin, Chongqing and southern cities, including Wuxi and Suzhou, through developing existing projects and launching new projects in these cities.