News
Southern China Property Developers heading South
for better Profit Margins
August 20th, 2015
China’s Guangzhou-originated Yuexiu Properties reported first half revenue went up 4.7 percent to reach RMB 6.63 billion for the six month ended June 30th. Contracted sales value (including contracted sales by joint venture projects) reached RMB11.49 billion, achieving 46 percent of its full year sales target.
In the first half of 2015, the bank loan financing was RMB 4.5 billion, the average funding cost in the first half year decreased to 5.02 percent. As of 30 June 2015, cash and cash equivalents and charged bank deposits were approximately RMB11.275 billion, the net gearing ratio was 65.5 percent.
In terms of regional composition, Guangzhou accounted for approximately 53.3 percent of the aggregated contracted sales value of the first half of 2015, Pearl River Delta (excluding Guangzhou) accounted for approximately 15.4 percent, Yangtze River Delta accounted for approximately 9.8 percent, Central China Region accounted for approximately 13.5 percent, and Bohai Rim Economic Zone accounted for approximately 8.0 percent. In terms of type, residential properties and parking accounted for approximately 98 percent, commercial properties and others accounted for approximately 2 percent, company chairman Zhang Xiaoxin told a conference when announcing the results.
Also Southern China- focused Guangzhou R&F Properties reported total turnover for the six months ended 30 June 2015 went up 29 percent to RMB 12.72 billion, as compared with the corresponding period of 2014. Profit of the firm went up 7 percent to RMB 1.70 billion. Gross margin of property development went up 31 percent with net profit increased by 55 percent to RMB 1.22 billion. Average cost of bank borrowings for the period was 6.8 percent. The company declared an interim dividend RMB 0.3 per share.
R&F has started to develop real estate projects overseas, with initial investments in Malaysia and Australia's Brisbane to be on sale this year.
