Update | Country Garden targets 400bn yuan sales for 2017 after posting 22pc core profit rise
China’s third largest developer sees revenue grow 35pc to 153 bn yuan
Country Garden, China’s third largest developer, has reported better-than-expected profit growth for 2016, driven by strong house sales, especially in smaller cities.
Core profit – which excludes valuation gains and foreign exchange losses – rose 22 per cent from a year earlier to 12 billion yuan (US$1.74 billion), the company said on Wednesday. Net profit was up 24 per cent to 11.5 billion yuan.
The Guangdong-based developer has set a 2017 contract sales target of 400 billion yuan, a 30 per cent jump from 2016.
“We have a rich land bank, with 616.3 billion yuan worth of saleable units this year,” founder and chairman Yeung Kwok-keung, said at its result briefing in Hong Kong. He added the developer will spend another 150 billion yuan restocking that land bank this year.
We have a rich land bank, with 616.3 billion yuan worth of saleable units this year
Total revenue grew 35 per cent to 153 billion yuan, while the company’s net gearing ratio declined to 48.7 per cent.