China developer warns of lower profit

Mainland developer Yuzhou (1628) expects the net profit in 2020 to drop significantly due to the pandemic and tightened regulation in the property sector.

The decrease was mainly attributable to delay in the development of certain projects and the delivery of properties due to the Covid-19 outbreak and decrease in the gross profit margin due to certain real estate-related regulatory control measures causing the selling price of the property projects to be lower than expected.

Meanwhile, Greenland Hong Kong (0337) is to acquire a 35 percent stake in a property project in Guangzhou at 175 million yuan (HK$208.3 million). The remaining 65 percent stake is owned by a company under Wang Weixian, an executive director at Greenland Hong Kong.

Separately, Ganglong China Property (6968) said net profit increased 44 percent to 961 million yuan in 2020.