New | Glorious Property Holdings posts 2.99bn yuan in losses, from 292.1 million yuan profit in 2013
Hit by sinking profit margins and lower property sales, the highly-geared mainland China developer Glorious Property Holdings said on Thursday it recorded a loss of 2.99 billion yuan last year, in a sharp reversal from the 292.1 million yuan profit it rang up in 2013.
Turnover plunged 48.1 per cent to 4.26 billion yuan for the year ended December 31 as demand weakened in a market downturn despite the relaxation of real estate curbs in an effort to stimulate demand.
The developer’s gross profit margin was negative 22.4 per cent last year, compared to 12.8 per cent in 2013. The developer has projects in Shanghai, Beijing, Tianjin, Wuxi, Hefei.
“The group recorded a consolidated gross loss and negative gross profit margin mainly (was) because of the increase in the average selling price was smaller than the increase in the average cost of sales for the properties sold and delivered in the current year,” said chairman Cheng Lixiong in the company statement filed with the stock exchange.
Its gearing ratio jumped to 135. 3 per cent last year, from 87.4 per cent, with current borrowing amounting to 15.67 billion yuan. Its cash reserve stumbled to HK$449.2 million, down 71 per cent from 1.54 billion yuan in 2013.
Shares in Glorious Property, however, rose 8.49 per cent to HK$1.15 at 10 am after it resumed trading on Thursday. The shares had been suspended from trading on April 1 pending the release of the firm’s annual result.
