POLY Real Estate Group Co, China's largest state-owned developer, said yesterday net profit more than doubled last year, mainly due to strong sales of homes in Guangzhou and Beijing.
Earnings jumped 121.77 percent to 1.489 billion yuan (US$206.8 million) during the year ending December 31, the Guangzhou-based property developer told the Shanghai Stock Exchange.
Property sales surged 104 percent to 17.04 billion yuan in 2007 after the company sold 1.996 million square meters of property, an increase of 62 percent compared to 2006.
Earnings per share rose 96.97 percent to 1.30 yuan.
During the year, 4.1 million square meters started construction, 72 percent more than 2006, and the total gross floor area completed reached 1.71 million square meters, a year-on-year increase of 87 percent, the company said.
For 2008, Poly said it will continue to focus on developing homes in major Chinese cities such as Shanghai, Beijing, Guangzhou, Wuhan and Shenyang.
The company also said it plans to start construction on about 6.3 million square meters of property, and complete some 3.5 million square meters this year.
Also yesterday, Shanghai Shimao Co Ltd, a real estate developer owned by billionaire Xu Rongmao, reported a decrease in earnings due to a sales drop.
Net income fell 37.22 percent to 139.8 million yuan last year, it told the Shanghai Stock Exchange.
The company said it plans to further tap the booming commercial property sector in 2008 and speed up development of its existing projects in Kunshan and Nanjing.
http://www.shanghaidaily.com/sp/article/2008/200802/20080206/article_348107.htm
Shanghai Real Estate market
Shanghai (Chinese: 上海; Pinyin: Shànghǎi; Shanghainese: /zɑ̃'he/; abbreviation: 沪; nickname: 申), situated on the banks of the Yangtze River Delta in East China, is the largest city of the People's Republic of China and the eighth largest in the world.[4] Widely regarded as the citadel of China's modern economy, the city also serves as one of the nation's most important cultural, commercial, financial, industrial and communications centers. Administratively, Shanghai is a municipality of the People's Republic of China that has province-level status. Shanghai is also one of the world's busiest ports, and became the largest cargo port in the world in 2005.
Originally a fishing town, Shanghai became China's most important city by the twentieth century and was the center of popular culture, intellectual discourse and political intrigue during the Republic of China era. After the communist takeover in 1949, Shanghai languished due to heavy central government taxation and cessation of foreign investment, and had many of its supposedly "bourgeois" elements purged. Following the central government's authorization of market-economic redevelopment of Shanghai in 1992, Shanghai has now surpassed early-starters Shenzhen and Guangzhou, and has since led China's economic growth. Some challenges remain for Shanghai at the beginning of the 21st century, as the city struggles to cope with increased worker migration, a huge wealth gap, and environmental degradation. Despite these challenges, Shanghai's skyscrapers and modern lifestyle are often seen as representing China's recent economic development.
Tuesday, February 12, 2008
Poly nets double its profit on home sales
