COLI aims to launch property projects worth up to HK$110b in second half

China Overseas Land & Investment (COLI), the biggest mainland developer listed in Hong Kong by market value, yesterday said core profit in the first half of the year jumped 33.7 per cent to HK$10.79 billion.

The company also said it planned to launch up to 30 projects worth HK$110 billion in the second half.

"We will price our projects according to market conditions and ensure strong profitability," chairman and chief executive Hao Jianmin said, reaffirming guidance that it will hit its annual sales target of HK$140 billion.

The core profit topped the median estimate of HK$9.39 billion in a Bloomberg survey.

Turnover, excluding those of the joint ventures and associates, increased 54 per cent from a year earlier to HK$49.57 billion, with 96.7 per cent from the mainland property development business, the company said in a statement to the stock exchange.

Slow cash collection from sales as well as huge land premiums, development costs and tax expenses pushed up its net gearing ratio to 37.2 per cent at the end of June, from 28.4 per cent at the end of last year.

Hao said the firm planned to launch 28 to 30 projects and expected the cash collection ratio to pick up from 77 per cent in the first half as liquidity for the property sector was likely to improve with more targeted mini-stimulus measures to be launched in the second half.