China Resources Land Ltd. (01109.HK) has seen 31.8 percent growth in core net profit for the first six months, mainly from property development.
Core net profit came in at HK$5.02 billion (US$647.68 million), with aggregate net profit increasing 26.64 percent to HK$6.45 billion including revaluation gains from investment properties, according to the Hong Kong Economic Journal.
Gross profit margin grew on increased selling prices and more lucrative projects in first-tier cities, senior vice president and chief financial officer Yu Jian said.
Meanwhile, improved cost control pushed up profit margins in third and fourth-tier cities.
Aggregate gross profit margin was up 1.8 percentage points to 32.2 percent.
Residential property development saw its gross profit margin increase 2.8 percentage points to 30.8 percent.
Investment property had a profit margin of 60.8 percent, down 2.5 percentage points.
Nearly 90 percent, or HK$32.83 billion, of revenue came from property development, up 31.4 percent.
Yu said the company will cap its renminbi debt at 45 percent of the total after the yuan’s 5 percent devaluation led to an additional 150 million yuan of interest and dividend expenses, plus 120 million yuan of foreign exchange losses, slashing net profit by 1 percent.
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