China Resources Land’s interim profit rose 16.2 per cent to 11.9 billion yuan, while Sunac’s loss narrowed by 14.4 per cent
Sunac, one of China’s largest privately owned developers, founded by the magnate Sun Hongbin, said on the same day that its interim loss narrowed by 14.4 per cent to 12.8 billion yuan, helped mainly by lower operating and financing costs.
The improved results underscore how a recovery in mainland China’s retail consumption and the government’s policy lifelines towards the builders and developers have begun to sow the seeds of recovery in the property industry. As recently as a year ago, many developers including Sunac were still in crisis mode as they struggled with ballooning debt, tepid sales and a dearth of financing from banks.
But CR Land’s residential development business, which makes up the bulk of its revenue, remained under pressure as home prices continued to decline while homebuyer sentiment stayed weak.
Interim core net profit - a measure that strips out one-off items - fell 23.8 per cent to just under 4 billion yuan, contributing to a 6.6 per cent decline in the group’s overall core net profit to 10 billion yuan.
