New accounting, cost controls help achieve record $384m earnings
China Resources Land's share price soared to a record high of $5.45 yesterday after the developer announced its net profit rose sharply to $384.51 million last year.
Wang Yin, the managing director of the red-chip developer, yesterday said while the massive growth was due mainly to the new accounting system, better cost controls and rising house prices on the mainland had boosted profits.
China's housing market has boomed recently, with prices in 35 large cities rising an average of 9.7 per cent in the first half of last year.
Under the old accounting standard, CR Land posted a 156.1 per cent increase in net profit last year, double Thomson Financial's estimate of 78.56 per cent. The restated profit for 2004 was $21.36 million.
Earnings per share rose to 24.8 cents from 1.4, while turnover jumped 43.2 per cent to $2.7 billion.
The company proposed a final dividend of 3.3 cents per share.
