Mainland developer China Resources Land has raised its 2012 sales target 11 per cent to 40 billion yuan (HK$49.1 billion) even though it expects home prices to fall and the central government to maintain its property cooling measures. 'I think the tightening policies will continue,' CR Land's chairman Wang Yin (pictured) said. 'For us, we have adjusted our product types since two years ago, with about 80 per cent being smaller flats targeting end-users. We are also limiting high-end properties to no more than 20 per cent,' he said. To achieve the 40 billion yuan sales target, Wang said the company would develop projects in second- and third-tier mainland cities, including at least one-third that are unaffected by the home-purchase restrictions. It would also develop more non-residential properties, such as commercial investment properties, to generate more rental income. Announcing its annual results yesterday, CR Land reported a 34.4 per cent year-on-year rise in net profit to HK$8.07 billion. Total revenue surged nearly 40 per cent to HK$35.80 billion. Excluding gains from property revaluations, the developer's underlying profit grew 32 per cent to HK$56.27 billion last year. It recommended a final dividend of 16.6 HK cents per share, bringing the total dividend for 2011 to 26.1 HK cents. Wang said the firm's gross profit margin might fall from 39.6 per cent last year to about 35 per cent or 36 per cent in 2012 because it faces competitive pressures that could cut prices and increase labour costs. He did not say how much the developer would discount prices in coming flat sales, but said it might offer more conservative prices for new developments and would only seek a net profit of about five to 10 per cent for residential property projects. In a break with the practice of previous years, Wang did not announce the company's budget for buying land sites this year, but said it would be 'more prudent in acquiring land this year, which will depend on its property sales and market situation'. The firm said it had a land bank with a total gross floor area of 29.85 million square metres. Wang Guohua, CR Land's chief financial officer, said that as of March 7, the firm had made contracted sales of more than 4.37 billion yuan this year, up 12 per cent from the same period in 2011. This pushes the total contracted sales value that can be booked this year to 35.35 billion yuan. CR Land shares closed 2.07 per cent higher at HK$13.82 yesterday.