Guangzhou R&F Properties, the largest developer in Guangzhou, has sold two luxury apartments for 101.5 million yuan (HK$115.2 million) to chairman Li Szelim and executive director Zhang Li. It said the sale would help improve the group's cash flow as the deal would provide a pre-tax profit of 35.5 million yuan. Mr Li and Mr Zhang each bought a serviced flat at the Ritz-Carlton Guangzhou in Tianhe district. The two executives agreed to make full payment within a month. Last month, the two executives also spent a total of 82.74 million yuan for two residential units at R&F City, Guangzhou. The purchase contributed a pre-tax profit of 32.6 million yuan. In the past two months, Mr Li and Mr Zhang have spent a total of 184.24 million yuan to buy properties from the firm. The company also secured approval from shareholders to sell 6 billion yuan worth of bonds on the mainland to pay bank debt and strengthen working capital. The developer said last month that the bonds would have a five to 10-year maturity. An application will be made to list the bonds on the mainland stock exchange with a targeted sale in the first quarter of next year. The firm's gearing rose to 139 per cent. In August, the company said it needed between 11 billion yuan and 12 billion yuan to meet debt repayment in the second half. Last month, the Real Estate Developers' Association of Guangdong, also chaired by Mr Li, submitted a proposal to the provincial government calling for an easing in financial policies, including a further interest rate cut to prop up sagging sales. Mr Li said developers who had borrowed to expand were facing a liquidity crunch as banks tightened lending and sales fell. Shares of Guangzhou R&F rose 1.48 per cent to close at HK$8.22. They have plunged 70 per cent in the past 12 months.