The shift by SOHO China Ltd. (00410.HK) in its business model to a rental-oriented one from a sales-oriented one has resulted in a surge in gross profit margin, the Hong Kong Economic Journal reported Wednesday.
The developer is planning to sell some of its mature non-core assets starting at the end of this month amid a rebound in the property market, the report said, citing chief executive Zhang Xin.
The company’s gross profit margin soared 24 percentage points to 74 percent last year as rental income jumped 1.48 times to 1.05 billion yuan (US$160 million).
Total net profit, however, plunged 86.8 percent to 538 million yuan.
Separately, China Aoyuan Property Group Ltd. (03883.HK) is expecting further losses on foreign exchange amid depreciation in the renminbi, chief operating officer Ma Jun said.
The company is seeking to lower the proportion of its foreign debt from 39 percent to mitigate the losses.
It has set a goal of between 16.7 billion and 17.5 billion yuan of contracted sales this year, up 10-15 percent from actual sales of 15.17 billion yuan last year.
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