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Hong Kong company reporting season
PropertyHong Kong & China

Shui On Land’s first half profit rises 13 per cent

The company says it has achieved 66 per cent of the year’s sales target in the first seven months

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Shui On Land’s flagship Xintiandi project in Shanghai. Photo: SCMP handout
Sandy Li

Shui On Land, chaired by Vincent Lo Hong-shui, says it remains cautious on the company’s outlook, despite having already locked up more than half of this year’s 21 billion yuan (US$3.2 billion) sales target.

The company had achieved contracted sales of about 14 billion yuan , or 66 per cent of the full year target in the first seven months of this year, said Lo, after the company posted a 13 per cent rise in core earnings for the first half of 2017, compared with the year-earlier period.

Underlying profit, excluding revaluation gains on investment properties, rose 1.25 billion yuan in the six months to June, up from last year’s 1.1 billion yuan.

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“We have no plan to cut selling price although the mainland real estate market is gripped by a slew of cooling measures,” Lo said at a post result briefing on Wednesday.

“We will try our best to achieve our sales target, such as by speeding up sales,” he said.

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Shui On Land chairman Vincent Lo says the company has already achieved 66 per cent of the year’s sales target. Photo: David Wong
Shui On Land chairman Vincent Lo says the company has already achieved 66 per cent of the year’s sales target. Photo: David Wong
Lo said the mainland government had launched a series of local and national measures designed to stabilise the property market.

“These are unprecedented measures and include the imposition of controls in granting pre-sale permits, price controls, restrictions on home purchases and residential mortgages,” he said.

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