Greentown China shares fall 12pc after first half profit warning
Greentown China shares slumped as much as 12.11 per cent in morning trade on Tuesday after yesterday’s profit warning for the first half of this year.
That was the biggest intraday drop since June 25 last year.
The Hong Kong-listed mainland developer said it expected a fall of over 65 per cent in its consolidated net profit attributable to the owners of the firm for the first half of this year compared with a year earlier.
The Hangzhou-based company’s gross profit margin will probably fall by about six percentage points in the first half, from 29.7 per cent a year earlier, it added.
Some of its joint ventures and associates had either reported lower gross profit margin or a loss during the period, and the company itself also suffered squeezed margins.
There was also no one-off gain in the first six months, while an acquisition generated a gain of 704 million yuan (HK$884.82 million) a year earlier, it added.
The alert also knocked down the share price of Sunac China by as much as 5.55 per cent.
Sunac, another mainland builder of luxury homes, bought a stake of 24.3 per cent in Greentown China in May.