Statistics

China Vanke H1 profit up

(Agencies)
Updated: 2010-08-10 10:51

China Vanke's net income fell 4 percent in the second quarter to 1.69 billion yuan ($250 million), as the country's top listed developer focused on the mass housing market.

For the first six months of the year, Vanke earned net profit of 2.81 billion yuan, versus the 2.52 billion yuan profit in the year-ago period.

Vanke was upbeat about its sales outlook for the second half of the year.

"As most of the company's development projects will be completed in the second half of the year, we expect a larger revenue growth in the second half compared to the first-half," it said in a statement to the stock exchange on Monday.

China Vanke's Shenzhen-listed shares have fallen by around a quarter since the beginning of the year, underperforming a fall of nearly 19 percent for the main China index in Shanghai.

Special Coverage: 2010 Interim Results of Listed Companies Related readings:  China Vanke sales rise 28% in June  Vanke, Evergrande lead in first half sales  Vanke snapping up land parcels  Vanke denies rumors of nationwide price cuts  Vanke cuts price as it faces sales pressure

Property transactions in China's major cities, especially Beijing and Shanghai, took a hit after the government tightened measures in the real estate sector to cool runaway prices.

Vanke, traditionally a mass-market focused developer with a presence in more than 30 Chinese cities, is in a better position than many of its peers that mainly rely on the upmarket segment in the tier 1 cities, analysts said.

Having started business selling video cameras and making films, Shenzhen-based Vanke was among China's first listed companies.

Now the country's top developer by sales, Vanke entered the real estate sector in 1989 as its video camera business barely survived due to cut-throat competition.

Vanke's yuan-denominated A-shares closed at 7.96 yuan on Monday prior to the earnings announcement, down 0.5 percent.