[photopress:property_xu_rogmao.jpg,full,alignright]Shimao Property, the Chinese developer controlled by billionaire Xu Rongmao, seen in our illustration, said its 2007 profit rose 80% as it sold more apartments amid surging home prices in the world’s most populous nation.
Net income rose to RMB4.1 billion ($585.34 million), or RMB1.26 a share, from RMB2.28 billion , or 0.85 yuan, in 2006, the company said yesterday in a statement. Sales rose 34% to RMB9.28 billion.
Chinese developers may face slowing growth after the government sought to curb home prices by reducing lending. Home sales volumes fell in most Chinese cities in the first quarter.
Shimao’s stock in Hong Kong has dropped 29% this year, after jumping 95% in the first 10 months of 2007.
Shimao last week received a $300 million loan from BNP Paribas SA to fund expansion in China.
Property prices in 70 major Chinese cities rose 10.9 percent in February from a year earlier.
Shimao benefited from higher real estate values in the first half of 2007 as smaller builders were forced out of business by government austerity measures. The company aimed to triple projects in China by 2010, Chairman Xu said in January 2006.
Xu Rongmao said, ‘Certain small and medium-sized property companies may have difficulties in carrying on business.’
His company acquired 10 plots in 2007 and four sites this year, expanding its land reserves by 10.7 million sq m to 26.5 million sq m in 22 cities.
The company completed 836,804 sq m of property developments during the year and booked RMB9.3 billion in revenue from real estate sales.
The company will pay a final dividend of 16 HK cents, compared with 20 HK cents a year earlier.
Source: China Daily