Hong Kong-listed Kaisa Group Holdings recorded a 52.2 per cent surge in gross profit to 1.32 billion yuan [HK$1.5 billion] for the year ended December 31, 2009, from 867.1 million yuan in 2008. Revenue increased by 50.2 per cent to 4.67 billion yuan from 3.11 billion yuan a year earlier.
The Shenzhen-headquartered property company says recovery in the mainland's real estate industry was mainly due to the economic stimulus package launched by the central government.
The results encouraged the group to further develop its real estate business in Pearl River Delta cities since the trend of urbanisation encouraged villagers to move out to these cities, and the group's development projects have been a popular choice.
The group's accurate assessment of the market trend, together with its enhanced operational efficiency, have contributed to Kaisa's contracted sales growth by 114 per cent year-on-year to 6.02 billion yuan, with 77 per cent of the sales of 4.66 billion yuan coming from the Pearl River Delta region alone.
The Yangtze River Delta region and Chengdu-Chongqing region contributed 800 million yuan and 560 million yuan respectively.
With the encouraging results, the group continues to increase its investments in the Pearl River Delta and Yangtze River Delta, and to actively pursue opportunities in the Pan-Bohai Bay Rim region, the company says.