Guangzhou-based Yuexiu Property warns of tougher times ahead after Beijing tightens screws on housing sector, slowing economy
- The Hong Kong-listed mainland developer posted a 63.2 per cent rise in first half core profit to 1.83 billion yuan on the back of higher property sales
Mainland developer Yuexiu Property posted a 63.2 per cent jump in first half core net profit, but warned that the outlook remains tough against the backdrop of a slowing Chinese economy and property cooling measures.
“The government has been very clear that they want to steady the property sector and the price of land. Rising US-China trade tensions has also made the property market nervous,” Lin Zhaoyuan, chairman of the Guangzhou-based company, said at a news conference to announce the interim results on Tuesday.
“In April and May, the whole [Chinese] economy began slowing, which has unnerved some property developers. With the policies put in place by the Chinese government, the property market has also entered a cooling period.
“We will remain cautious and steadily progress ahead in the second half.”
The state-owned developer’s core net profit – excluding gains – was 1.83 billion yuan (US$259.24 million) for the first half, benefiting from property sales and operations, according to a filing to the stock exchange. The company reported 1.12 billion in core profit in the same period last year.
Yuexiu’s contracted sales grew 31.9 per cent year on year to 36.90 billion yuan, 54.3 per cent of its full-year target of 68 billion yuan.