Kaisa Group Holdings reported net profit rose 9.4 per cent to 547.9 million yuan (HK$622.8 million) last year compared with 500.9 million yuan in 2008, while turnover surged 50 per cent to 4.67 billion yuan. For this year, the Shenzhen developer has set a contracted sales target of 10 billion yuan, 66 per cent higher than sales last year. The company booked 4.51 billion yuan from the sale of 494,632 square metres last year with about 70 per cent of the floor area coming from projects in Shenzhen. The average price of the projects dropped 6.42 per cent to 9,124 yuan per square metre. 'Most of the projects booked last year are residential. But in 2008, we had more commercial projects, which sold at a higher price,' chairman Kwok Ying-shing said. The developer generated 6.02 billion yuan from contracted sales of 688,100 sq metres for the year to December, compared with 2.81 billion yuan the pervious year. President Ye Jiansheng yesterday said the company this year expects to generate 10 billion yuan from contracted sales of 900,000 sq metres this year. The company has generated 1.1 billion yuan from contracted sales so far this year, 50 per cent higher than the same period last year. 'The cooling measures released in the last few months only have a psychological impact on the property market,' Kwok said, adding that sales were about 50 per cent higher than the same period last year. 'The demand from end-users remains strong.' To secure stable income, the firm will build more commercial projects. 'About 15 to 20 per cent of the total gross floor area of our projects would be commercial space in the next three years,' Kwok said, adding that the revenue from commercial development will increase to 200 million to 300 million yuan by 2012. The developer bought three sites with a total gross floor area of 1.25 million sq metres in Shenyeng, Jiangyin and Shenzhen since it went public in December last year. The land price of the sites ranged from 854 yuan to 2,876 yuan per square metre. To expand its fund raising and project development channels, the company signed strategic alliance framework agreements with Sino Life Insurance and HNA Property in December last year and March respectively. Kwok said the company was also in talks with a Hong Kong-listed company on an old town redevelopment project in Shenzhen. No dividend was declared. Shares in Kaisa rose 0.38 per cent to close at HK$2.62 yesterday.