China Vanke to build more affordable projects
By Jonathan Yeung (China Daily)
Updated: 2006-08-02 13:44 "Carrying out this type of project will help people in need while
strengthening China Vanke's public image, which I believe will well offset the
influence brought by the thin profit margin, especially from a long-term
perspective," Wang said.
With the Pearl River Delta, Yangtze River Delta and Bohai Rim Region as its
key property development areas, China Vanke saw its total land reserve and
revenue reach 901,000 square metres and 6.15 billion yuan (US$768 million) for
the six months ended on 30 June 2006, representing an increase of 51.9 per cent
and 53.2 per cent year-on-year, respectively.
During the same period, China Vanke realized a sales area of 1.22 million
square metres, up 33.2 per cent from the corresponding period last year. Its
sales revenue in turn jumped to 7.39 billion yuan (US$923 million), up 27 per
cent from a year ago.
As such, China Vanke reported an increase of 52 per cent in turnover to 6.24
billion yuan (US$780 million) as the company announced its 2006 interim results
yesterday. Its net profit also surged by 58.9 per cent from the previous year to
1.27 billion yuan (US$158 million).
In the first half of 2006, China Vanke acquired 36 new projects, taking its
land bank to 15.65 million square metres in terms of gross floor area by the end
of June 2006.
To finance its future development, such as resource integration and property
project acquisition, China Vanke would raise about 4.2 billion yuan (US$525
million) by private placement of about 700 million A shares.
China Resources, China Vanke's largest shareholder that currently holds a
15.17 per cent stake, agreed to buy no more than 110 million new shares from
China Vanke. The new share sale will push up China Resources' shares in China
Vanke to 15.7 per cent of the total.
(For more biz stories, please visit Industry Updates)
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