New | China Resources Land H1 core net profit up 31.8 per cent

State-owned mainland Chinese developer China Resources Land reported its core net profit in the first half rose 31.8 per cent to HK$5.02 billion, its interim result said.

The company’s revenue increased by 29.7 per cent year-on-year to HK$37.14 billion during the first six months, 88 per cent of which came from its property development. Its contracted sales reached 37 billion yuan (HK$45.17 billion), up 44.7 per cent from the same period last year. This was partly due to bumper sales from Shenzhen, which generated 8.69 billion yuan in the first half, the company said.

Focusing on the first-tier and second-tier cities, China Resources Land acquired 10 land parcels for 38.38 billion yuan in the interim period ending on June 30. In June, it outbid other developers with Huafa Group to snap up a land parcel in Shanghai for 8.8 billion yuan (HK$11.1 billion), the highest by then this year.

The company’s rental income from its investment properties edged up by 17.4 per cent annually to HK$3.11 billion. At the moment, it has nine Mixc malls and five Hi5/Mix One malls in China, and it plans to open four more shopping malls in Changsha, Ganzhou, Shenyang, and Hefei in the second half of this year.

“Investment properties, shopping mall in particular, are the Group’s key business focus. 2015 to 2018 are the peak years for new openings of investment properties,” the filing said.

“For investment properties, the Group will offer lean management, implement online data management, and enhance service quality for mobile terminals. A community on-line network will be consolidated to implement O2O practice, to explore and gradually refine the “internet + property” service model.”