China’s listed developers post rising profits in H1

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BEIJING

Listed real estate firms in China saw fast profit growth in the first half of the year, according to their latest financial results.

More than 30 developers have released their semi-annual reports with the Shanghai or Shenzhen stock exchanges, most of which saw a faster growth rate.

China Vanke Co., Ltd., a leading property developer, recorded net profit growth of 29.8 percent in H1, while its revenue rose 31.5 percent year on year.

Sunac China Holdings Limited, another property giant, reported a 61.7-percent year-on-year surge in net profits during the period while its revenue gained 64.9 percent.

According to Fang Ling, an analyst with research firm China Real Estate Information Corp, the impressive results were partly due to booming sales in the past two years, as revenues for real estate firms are often recognized when the houses are delivered.

Unearned revenue, which is linked to a property developer’s future results, saw a notable increase among the listed companies, indicating growth potential.

House prices in China’s major cities largely remained stable in the past months amid the country’s tightening control of the real estate market, with officials reiterating that “houses are for living in, not for speculation.”

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