Ryoden group well above forecast with 357pc profit climb
STRONG growth in property sales and rental income has lifted Ryoden Development's profit by 357 per cent to $174.6 million for the year to December 31, compared with $38.2 million in 1991.
The net profit was $14.6 million above the forecast made in the group's prospectus issued in September when it listed on the stock exchange.
Turnover for the year rose 119 per cent to $558.1 million. Earnings per share were 28.27 cents compared with 6.79 cents previously.
The group will pay a final dividend of five cents a share, and a bonus issue of one warrant for every five existing shares was recommended.
Describing 1992 as a year of dynamic growth, chairman Hu Fa-kuang said Ryoden sold a number of properties and undertook several new projects which increased profit while maintaining a healthy land bank.
New projects include the developments at Hing Hon Road in Hongkong, Huaihai Zhong Road and Xietu Road in Shanghai, and Honggang Road in Shenzhen, with a total floor area of about 1.36 million sq ft.
He said speculation in the local property market had declined in 1992 due to the Government's imposition of a 70 per cent ceiling on mortgage lending.
''Although the overall sentiment of the home buyers has inevitably been affected, the property market should benefit in the long term,'' he said.
''It is expected that the market will be more active later in the year.'' In China, Mr Hu said, Ryoden would continue to pursue opportunities in major cities with genuine demand for property, including Shanghai, Shenzhen and Guangzhou, with Shanghai as the main focus.
Managing director Raymond Hu looked forward to intense activity this year.
Projects being put on the market included the Beachside at Repulse Bay, Avalon Court in Tai Hang Road, Highland Terrace in Shenzhen and phase one of the Xietu Road project in Shanghai.