China Vanke records strong profits
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E-mail Xinhua, August 22, 2016
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View of the headquarters of China Vanke Co Ltd in Shenzhen city, south China's Guangdong Province. [File photo] |
China Vanke Co. Ltd., the country's leading property developer, reported decent net profits in the first half of this year while admitting that the heated takeover battle has hit its normal operation.
The prolonged tussle over control of Vanke "has not been resolved satisfactorily up until now," according to a statement the company filed to the Shenzhen Stock Exchange on Sunday.
The current management will strive to stabilize operation but it cannot rule out the possibility of future results being affected by the takeover battle, the Shenzhen-listed developer said in the statement.
Profits up
Vanke's net profits in the first half of 2016 rose 10.4 percent to reach 5.35 billion yuan (US$808 million), notably lower than the 28.1 percent growth in the first quarter of the year.
The company's operating revenue soared 48.8 percent to 74.8 billion yuan, lower than the 64.3 percent rise reported in the first quarter of the year.
"The growth in profit was slower than that in operating revenue, as certain projects booked during the period were sold during the property market adjustment in 2014," Vanke said in the statement.
Vanke's sales of residential property, in terms of floor space, soared 55.8 percent to 14.1 million square meters in the first half of 2016. In revenue terms, Vanke's sales of residential property jumped nearly 70 percent to 190.1 billion yuan.
The Shenzhen-based developer said China's property market registered satisfactory sales in the first half of 2016.
Since the second half of 2014, sales of residential property in medium- and large-sized cities have rebounded, showing increases for 20 months in a row. The recovery in transaction numbers has continued for 15 months.
According to the National Bureau of Statistics, sales of residential property in China, in terms of floor space, rose 28.6 percent year on year to 570 million square meters in the first half of 2016. In revenue terms, sales of residential property jumped 44.4 percent to 4.2 trillion yuan.
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