Beijing Capital Land, whose shares have been suspended since June 20 after the chairman was arrested, reported a more than fivefold increase in first-half profit. The company, one of the largest property developers in Beijing, said net profit rose to 86.7 million yuan from 15.7 million yuan. Sales declined 29 per cent to 177.6 million yuan, according to a summary filed with the stock exchange last night that did not account for the contrast between rising profit and a slump in revenue. The company, a unit of Beijing Capital Group, the city government's holding company, could not be reached for comment and there was no indication when the stock would resume trading. Capital Group and Capital Land chairman Liu Xiaoguang was arrested in June in connection with a corruption scandal involving former Beijing vice-mayor Liu Zhihua. The city executive was arrested on June 11 and charged with corruption and a 'decadent lifestyle'. Capital Land said Liu Xiaoguang was co-operating with regulators on the investigation. In May, Capital Land's successful 1.8 billion yuan offer for Beijing Morgan Centre, a large property project next to the Olympic stadium, exceeded rival bids by 200 million yuan. The proposed 272,800 square metre area will be used for offices, apartments and a hotel. Sources said earlier that Liu Zhihua was involved in requisitioning the Morgan Centre from its original developer, Beijing Morgan Investment, and selling it through public tender to Capital Land last month. Last year, Capital Land's profit fell 18.67 per cent to 211.5 million yuan while turnover dropped 30.35 per cent to 1.13 billion yuan. Capital Group has been seeking to develop properties outside Beijing since last year. It has acquired a combined area of 1.85 million square metres in Tianjin, Taiyuan, Wuxi and Chengdu as of March this year, according to its 2005 report.