Evergrande Property Services’ ability to remain afloat receives a boost after 43% jump in first-half profit
- Property services arm of China Evergrande Group posts 43 per cent jump in first-half profit to US$107.4 million
- The company’s contracted gross floor area under management drops to 812 million sq m at the end of June from 817 million sq m at the end of March
Evergrande Property Services Group, the property-management affiliate of embattled China Evergrande Group, reported a big jump in first-half profit.
Net profit attributable to the owners of the company for the six months to June rose 43 per cent to 781.3 million yuan (US$107.4 million), according to a filing to the Hong Kong stock exchange on Thursday night. Revenue rose 6.2 per cent to 6.1 billion yuan.
Evergrande Property Services had a total contracted gross floor area of about 812 million square metres at the end of June, the filing showed, but this was down from 817 million sq m at the end of March.
The company said it will have sufficient working capital to meet its financial obligations up to next June. “We firmly believe that short-term headwinds will not hinder the long-term growth trend of the company,” Evergrande Property Services said in the filing.
“The group is implementing various measures to improve its liquidity. The directors, having considered the measures taken, are of the opinion that the group has the ability to continue as a going concern.”
The company also said it will “continue to actively and diligently take various measures to recover the losses from China Evergrande Group”.