Hong Kong-listed property developer Sinolink Worldwide Holdings plans to spend HK$1.5 billion on an 800,000 square feet residential lot it won in a public land auction in Shenzhen, according to chairman and managing director Ou Ya-ping. The small developer, which specialises in property development in Shenzhen, won the waterfront site on the reclaimed land in Shenzhen Bay with a 780 million yuan (about HK$730.8 million) bid last week. The land could provide total floor area of about 2.66 million sq ft and about 2,000 large flats, Mr Ou said. He expected the flats could sell at an estimated price of HK$880 per square foot after completion, generating total sales of more than HK$2.3 billion. He said the company had no future plans for investing in property in Hong Kong. He cited the keen competition among the SAR's larger developers. 'We small and medium developers can never compete with big players in Hong Kong. 'I don't think we can make any profit here,' he said. 'But in China, we are superior to the Hong Kong tycoons because most of us are more experienced in the property market in Shenzhen or other major mainland cities,' he said. Mr Ou added that the generally high returns made in the mainland property market had encouraged many small developers to turn to China. Citing his newly acquired Shenzhen lot as an example, Mr Ou expected the project could secure a profit margin of more than 40 per cent. He revealed yesterday that Sinolink had negotiated with some leading Hong Kong developers for a possible joint venture if Sinolink had managed to secure all three lots for sale in the land auction last Thursday. But the plan was scrapped as the two other lots were snapped by a mainland-based developer, Mr Ou said. He said the firm would continue to add to its land reserve in Shenzhen, Beijing and Shanghai in the future. The company now has a land bank of 750,000 square metres in Shenzhen, including its latest acquisition. However, Mr Ou admitted that the company would be extremely cautious in its Shanghai and Beijing expansion due to the possible high risks and low profit margins.