Kaisa group sees 3b yuan windfall

Kaisa Group (1638) saw its first-half net profit grow 8.5 percent to 3 billion yuan (HK$ 3.61 billion), according to an exchange filing.

Basic earnings per share for the period were 0.47 yuan and it proposed an interim dividend of 4 HK cents, up 33 percent from an earlier year.

The mainland developer said it has met Beijing's "three red lines" criteria for property developers in the January-June period this year. Of the three criteria, its liabilities to assets ratio decreased to 69.9 percent and net gearing ratio dropped to 93.7 percent. Cash to short-term debt ratio remained stable at 1.53 times.

According to the "three red lines," real estate developers are required to have a gearing ratio of no more than 70 percent, a net debt ratio of no more than 100 percent and a cash to short-term borrowing ratio of at least one.

The company's revenue for the period reached 30.07 billion yuan, up 35 percent year-on-year and the gross profit increased by 23.1 percent to 9.3 billion yuan compared to the same period last year. Contracted sales in the first six months surged by 77 percent to 63.85 billion yuan. It climbed to 23rd in terms of attributable contracted sales in the first half of 2021, according to a ranking jointly published by China Real Estate Information Corporation and China Real Estate Appraisal Centre. The company added that it is confident it will reach its sales target of 130 billion yuan for the year.

The company had a total of 233 real estate projects in 51 cities nationwide at the end of June and its land bank totaled 31.1 million square meters as of June 30, of which 61.8 percent is located in the Greater Bay Area.

Shenzhen and Guangzhou are the company's core markets, accounting for 35.3 percent of its land bank in the Greater Bay Area.

The company said it has entered the field of urban renewal since its establishment and has more than 213 urban renewal projects which have yet to be converted into its land bank as of June 30 this year, covering a site area of about 53.7 million sq m. There were 15 new projects in the first half of this year, many of which were located in the Greater Bay Area.

Meanwhile, it said in a media conference that it has also continued intensifying its business, with a new school and a new theme park in Shenzhen to open in September.