China Resources stays optimistic despite uncertainties as net profit rises 2.2%

PUBLISHED : Saturday, 18 August, 2012, 12:00am
UPDATED : Saturday, 18 August, 2012, 3:10am

China Resources Land expects to see a stable business performance in the second half of this year after reporting a modest 2.2 per cent increase in net profit to HK$3.69 billion for the six months to June 30.

The Hong Kong-listed developer of mainland properties said consolidated turnover rose 2.9 per cent to HK$7.92 billion.

Chairman Wang Yin said the property market in the second half of this year was expected to continue to face uncertainties and consistent policy tightening.

However, he said, the company held a cautiously optimistic view on the overall property market in the second half of 2012.

"The group will closely monitor market situations and enhance its capability to predict the market changes and to respond to such changes," Wang said.

As of 12 August, the company had achieved total contracted value of 60.52 billion yuan subject to recognition in 2012 and years to come, including the contracted value of 30.98 billion yuan in property sales that was achieved in 2011 and before but not yet recognised.

Earnings per share were 63.5 HK cents, down by 5.6 per cent over the corresponding period in 2011.

The company recommended an interim dividend of 6.3 HK cents per share.

In the first half of 2012, revenue from investment property business including hotel operations was HK$1.7 billion, up 38.5 per cent over the same period last year.

Gross profit margin for the period was 47.6 per cent, against 41.4 per cent and 39.6 per cent for the corresponding period and full year of 2011 respectively.

As of 12 August, the company's geographic coverage was extended to 39 cities with a total landbank of gross floor area of 28.19 million square metres, of which the residential landbank amounted to 23.63 million square metres, investment property under construction stood at 4.56 million square metres, and operating investment property totalled 1.87 million square metres.

China Resources Land has investment properties in Beijing, Shanghai, Shenzhen, Chendu, Wuhan and Hefei, Hangzhou and other cities.