Powerlong aims at sales of 6b yuan

PUBLISHED : Saturday, 24 March, 2012, 12:00am
UPDATED : Saturday, 24 March, 2012, 12:00am


Powerlong Real Estate Holdings has set itself a target of 6 billion yuan (HK$7.38 billion) in contract sales after reporting a drop last year.

The developer yesterday reported its contract sales last year dropped 11.8 per cent to 5.48 billion yuan from 2010. The total contract-sales area dropped 7.2 per cent to 811,959 square metres.

Turnover rose 18.5 per cent to 5.25 billion yuan while net profit grew 11.5 per cent to 3.55 billion yuan. However, its underlying profit, stripping out property revaluation gains, dropped 28.5 per cent to 903 million yuan.

The company built 657,575 square metres of gross floor area last year, 27.5 per cent more than in the previous year. That helped revenue from property sales to rise 14 per cent to 4.75 billion yuan.

To maintain stable income, Powerlong has retained some of the properties it built. The rental income from those properties, mainly in Powerlong City Plazas in Suqian and Yancheng, increased 7.7 per cent to 195 million yuan last year.

Powerlong opened six shopping malls in Suqian, Yancheng, Qingdao Licang, Qingdao Jimo, Luoyang and Quanhou Anxi last year. It also expanded into the hotel sector, opening two hotels in Qingdao and Haiyang.

Chief executive Hoi Wa Fong yesterday said the company had 1.8 billion yuan of cash on hand and no financing plans as of now, adding it was looking at a contract sales target of 4 billion yuan in the first half.

The board declared a final dividend of 6 fen a share, unchanged from the previous year.

Powerlong Real Estate shares fell 3.62 per cent to close at HK$1.33 yesterday.