[photopress:poly_real_estate.jpg,full,alignright]Poly Real Estate, China’s second-largest developer by market value, said net profit for the first quarter will more than triple from a year earlier thanks to increased apartment sales.
First-quarter profit rose more than 230% from last year’s RMB 78 million (US$11 million), the company said in a preliminary earnings statement file.
Let us not get too excited. There are reasons for this. First, part of last year’s sales was settled during the first three months. And the more-than-230% jump in unaudited net income was also helped by company consolidations.
Even allowing for that those results are not too shabby.
Chinese companies are required to make earnings forecasts if they expect their profit to rise or fall by more than 50%. And 230% is well above that figure.
In the first quarter, Poly’s sales rose 8.48% to RMB2.59 billion.