[photopress:Fan_Wei_prez_Forte_1_2.jpg,full,alignright]Forte Land Co, a Shanghai-based developer listed in Hong Kong, said profit went down last year sliding 14%. This was caused by the new land tax imposed by China curb speculation.
Net income dropped to RMB481 million (US$62 million), or RMB0.194 a share, from RMB561 million or RMB0.241, in 2005. Sales rose 23% to RMB2.53 billion.
Shanghai Forte — the chairman Fan Wei is shown in our illustration — has expanded business to nine cities, including Wuhan, Nanjing, Beijing, Wuxi, Chongqing, Haikou, and Tianjin., to diversify risks. In fact, it would appear that most real estate developers are looking most seriously at second tier cities to diversify their holdings.
In 2006, 58% of the gross floor areas of Forte’s 33 ongoing projects were outside of Shanghai. This percentage may well increase.
Source: Shanghai Daily