Developer Evergrande’s interim core profit jumps 56.5 per cent to 10.16 billion yuan

Evergrande Real Estate Group announced on Monday that core profit rose 56.5 per cent to 10.16 billion yuan in the first half of this year due to a significant increase in property delivery and higher selling prices.

The mainland’s fourth-largest developer by sales saw its revenue increase 22.7 per cent to 77.74 billion yuan, of which 97 per cent – 75.37 billion yuan – came from property.

“Benefiting from the further release of pent-up demand for improved housing, the sales will be boosted continuously in the second half of the year,” chairman Hui Ka-yan said in a company filing to the stock exchange. “Following the reduction of inventory level in the market and gradual materialisation of a soft landing, the average transaction price will also improve.”

No interim dividend was announced, unchanged from the same period last year.

Taking a 5.53 billion yuan revaluation gain on investment properties into consideration, net profit rose 40 per cent to 13.29 billion yuan for the six months to June.

It said contracted sales during the six months amounted to 87.11 billion yuan, 25.7 per cent higher than in the same period last year.