Agile Property Holdings is in talks to sell a minority stake in two residential projects as it moves to improve its cash flow and reduce debt.
The Guangdong developer said it had no plans to buy more land this year, adding that its 28.43 million square metres of land bank comprising 51 projects was sufficient for development over the next eight years.
Analysts said Agile's move was a 'sensible' way for a developer to manage its finances as Beijing continued efforts to tighten lending and cool growth in the property sector.
The developer disclosed the plan as it announced a 69.3 per cent jump in net profit to 2.1 billion yuan (HK$2.34 billion) for the past financial year to December on the back of strong property sales and rising home prices.
Earnings per share rose 58 per cent to 56.1 fen, compared with the preceding year. Gross margin expanded 7.7 percentage points to 50.5 per cent.
Chairman Chen Zhuolin said the company was selling between 25 per cent and 30 per cent of two residential projects to strategic investors.
The deals, if they materialise, would improve cash flow and reduce the company's net gearing from 60.5 per cent to 50 per cent, Mr Chen said.
