Chinese real estate developer Shimao Property Holdings has reported that its first-half net profit fell 56% from a year earlier on lower property sales.
Chairman Hui Wing-mau, who was ranked by Forbes Magazine late last year as China’s second-richest person, said that the company had cut its contracted property sales target this year by 20%, as he expected China’s real estate market to remain weak in the second half.
Shanghai-based Shimao said its net profit for the six months to June 30 was 919.1 million yuan ($167 million), down from 2.08 billion yuan in the same period of 2007.
Revenue fell 24% to RMB1.84 billion from RMB2.42 billion.
Revenue from property sales dropped 42% to RMB1.4 billion.
Shimao plans to complete 17 property projects in the second half, with a total gross floor area of 1.6 million square metres.
The company had a developable land bank of 26.4 million square meters, enough for development for six to seven years
Source: The Australian