Guangzhou R&F Properties first-half underlying profit jumps 31 per cent

Guangzhou R&F Properties, the largest developer in Guangzhou, and Yuexiu Property, the real estate arm of the Guangzhou city government, posted solid half-year results yesterday.

Guangzhou R&F said its underlying profit, excluding property revaluation gains, jumped 31 per cent to 1.14 billion yuan (HK$1.44 billion) in the first six months as turnover grew 21 per cent to 10.19 billion yuan.

The firm's chairman, Li Sze-lim, said Guangzhou R&F had set itself a sales target of 55 billion yuan for next year, 31 per cent higher than the 42 billion yuan target for this year.

"We have spent 12.67 billion yuan acquiring 12 sites in the first seven months. As we bought more sites, we need more money for development. Thus, we set a higher sales target for next year," Li said.

He said the firm had achieved half its sales target for the year in the first seven months and was confident it would meet the target by year end. Li expects property prices to rise steadily, in line with inflation and the growth of the economy.

"We will develop more projects targeting end-users and investment properties," he said.