Shanghai Zendai Property, a Shanghai-based developer, reported a 3.6 per cent gain in first-half profit after accounting changes meant sales could not be booked until buyers took delivery of property.
Net profit rose to HK$135.22 million from HK$130.5 million a year earlier as turnover grew 7.62 per cent to HK$807.58 million.
Zendai's shares tumbled 7.27 per cent to close at 25.5 HK cents yesterday. The stock is up 77 per cent this year.
Sales at the third phase of the company's Zendai Jia Yuan project in Shanghai contributed most to profit, although only some of the sales could be booked in the first half under the new accounting rules.
Units of Villas of Mandarin Palace, Zendai Jia Yuan and Zendai-Dong Zhou Mansion are scheduled for delivery and booking in the second half.
Zendai, which has a land bank of 3.1 million square metres, is finding asking terms for new sites demanding.
