Greentown profit down 67pc
Greentown China, a mainland luxury-home builder, on Monday reported a 67 per cent year-on-year slide in first-half net profit to 613 million yuan (HK$772 million), as high land costs and low selling prices compressed its profit margin.
Greentown China, a mainland luxury-home builder, on Monday reported a 67 per cent year-on-year slide in first-half net profit to 613 million yuan (HK$772 million), as high land costs and low selling prices compressed its profit margin.
Core net profit, excluding one-off gains from acquisitions and revaluation gains, fell 59.2 per cent, despite a 23 per cent rise in revenue to 12.6 billion yuan.
The weaker result was mainly due to a significant drop in the share of results of joint ventures and associates, an aggregate loss of 121 million yuan in the first half of this year versus a gain of 685 million yuan during the same period last year, Greentown said in a statement to the Hong Kong stock exchange.
The Hangzhou-based developer’s gross profit margin fell to 24 per cent from 29.7 per cent a year earlier.
The prosperity of China’s macro-economy is the true way to lead to a full recovery of the real estate market
“In light of the current market environment, the company will further strengthen sales, improve inventory turnover, speed up returns, adjust development pace, strictly control costs and improve its land bank structure through wisely selected high-quality projects to lay a solid foundation for its future development,” Greentown said.