Central China Real Estate sets aggressive sales target amidst senior management change
Hong Kong-listed real estate developer Central China Real Estate says it will seek to triple its sales by 2019, an aggressive target that will challenge the abilities of senior management, including its new chief executive officer Yuan Xujun.
Despite a boom in China’s property market in the past two years, CCRE, the biggest developer in Henan province, has seen sales growth lag behind its rivals, with 2016 net profit of 403 million yuan (US$58.42 million), roughly half from the previous year.
The company said during its annual results announcement on March 24 that it will not distribute a final dividend for 2016, reflecting the first time it has failed to do so since its 2008 listing in Hong Kong.
Founder and chairman Hu Baosen said the profit result was dragged by construction delays related to environmental protection requirements in Henan and the company’s aggressive business diversification plan in the past few years, including a 3 billion yuan investment to build six hotels.
The company said it planned to boost its residential sales to catch up with the aggressive sales targets of its competitors.
