Author : Editor
Despite a tough operating environment, 37 mainland developers each booked property sales exceeding 10 billion yuan (HK$12.3 billion) last year, compared to 35 companies in 2010, according to the China Real Estate Index System.
In terms of sales, China Vanke, Dalian Wanda and Evergrande Real Estate Group (3333) topped estimates, generating 121.5 billion yuan, 95.3 billion yuan and 80.4 billion yuan, respectively.
Other Hong Kong listed developers - China Overseas Land & Investment (0688), Country Garden Holdings (2007), Longfor Properties (0960) and Greentown China (3900) - ranked sixth to ninth in the top 10 by contracted sales.
Glorious Property Holdings (0845) chief executive officer Cheng Lixiong said so far he only sees "difficulties" and not a "crisis" for developers.
The Shanghai-based firm booked 13.3 billion yuan in contracted sales last year.
"This year, we will cut 25 percent of the land development target to maintain a healthy balance sheet," Cheng said, adding the move could save more than 1 billion yuan in costs. Glorious Property does not intend to purchase new sites until mid-2012, and its pricing will remain flexible. Last year, it offered 10 percent discount at projects in big cities.
It was reported that Glorious Property has to repay short-term debt and loans from trust companies. But it said only 10 percent of its total loans, or 1.25 billion yuan, were from trust companies. These loans fall due in September.
The company aims to reduce its gearing to 60 percent from 69.6 percent as of June 30. Glorious Property shares rose 1.58 to HK$1.29 yesterday.
Source : thestandard.com.hk
