Agile Property net profit plunges 68 per cent on higher land costs, forex losses
Guangdong developer plans to increase onshore financing, dispose low-margin projects
Guangdong developer Agile Property said on Wednesday that net profit fell 67.6 per cent to 1.39 billion yuan (HK$1.66 billion) on higher land costs and foreign exchange losses, despite an increase in revenue.
The company said it expects margins to improve this year on better sale prices after disposal of low-margin projects.
Core profit fell 39.8 per cent to 2.43 billion yuan during the period, while revenue rose 12.2 per cent to 43 billion yuan.
“Last year we spent a lot of efforts on clearing inventories,” said Chen Zhuolin, chairman. He said that the company’s strategy of cutting prices for fast turnover led to the lower profits in 2015.
Agile’s average selling price declined 7 per cent to 8,642 yuan per square meter in 2015. The developer said it bought only two land parcels last year to shore up its land bank.
The construction of the Shenzhen–Zhongshan Bridge has brought many Shenzhen buyers to Zhongshan