Written by The Edge
Thursday, 29 July 2010 09:17
Pan Hong Property Group, the Hong Kong-based property developer that focuses on developing properties in the second and third-tier cities in China since 1980s, recorded a net profit of RMB13.0 million ($2.6 million) for the quarter ended 30 June 2010 (1Q2011), an increase of 27.4% from RMB10.2 million in 1Q2010.
The increase in the group’s revenue to RMB88.2 million in 1Q2011 from RMB23.8 million in 1Q2010 lifted the group’s 1Q2011 gross profit to RMB31.9 million, compared to 1Q2010’s RMB6.2 million. Gross profit margin was also higher at 36.2% in 1Q2011, compared to 26% in 1Q2010. Gross profit margin was lower in 1Q2010 due to the sale of car park lots at Nanchang Honggu Kaixuan Phase 1 in that quarter.
Pan Hong says it ended 1Q2011 financially stronger with a cash and bank balances of RMB202.8 million as at 30 June 2010, compared to RMB71.2 million as at 31 March 2010. Net asset value of the group also improved to RMB 221.71 cents as at 30 June 2010 from RMB219.01 cents as at 31 March 2010.
With an aggregate pre-sales value of RMB702.0 million for its residential and commercial units as at 30 June 2010, the group remains positive for the coming quarters. In addition to the sale of the remaining residential units of Nanchang Honggu Kaixuan Phase 2 and Huzhou Hua Cui Ting Yuan Phase 1, the group will also focus on the sale of commercial units in Nanchang Honggu Kaixuan Phase 1 and 2 and Huzhou Liyang Jingyuan Phase 2.
Further, the group plans to start the construction of Yichun Project Phase I, Fuzhou Project Phase I in first half year of FY2011 and expected commence the construction of Huzhou Runyuan Project Phase I and Nanchang Dingxun Project Phase I in second half year of FY2011.
