Sunac China Holdings Ltd. (01918.HK) is seeking more acquisition opportunities in second-tier cities with its cash pile of 16.79 billion yuan (US$2.61 billion), chairman Sun Hongbin said.
But in view of the country’s slowing economy, Sun said the company will preserve more cash to ensure its ability to make acquisition offers when the right opportunity arises, the Hong Kong Economic Journal reported on Wednesday.
Sun said his company has established a solid reputation as an investor in the property sector following its attempts to be a white knight to Greentown China Holdings Ltd. (03900.HK) and Kaisa Group Holdings Ltd. (01638.HK), Sun said.
Sunac China posted a core profit of about 1 billion yuan for the first six months this year, down 1.96 percent from a year earlier. Net profit was 951 million yuan, up 17.08 percent.
It held 16.79 billion yuan of cash as of the end of June, with a net gearing ratio of 70.7 percent.
The mainland developer plans to launch the sale of eight new projects in the second half of this year, bringing in 19.3 billion yuan. Total sales for the year are expected to reach 104 billion yuan.
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