China Resources Land 1st Half Net Rose Nearly 30%

By P.R. Venkat

China Resources Land's first-half net profit rose nearly 30% on year because of increased contributions from the developer's investment property business and asset-light management services.

Net profit for the period was 13.74 billion yuan ($1.89 billion), while revenue was nearly flat at CNY72.97 billion, the company said Wednesday.

During the first half, rental income from shopping malls and hotel business grew significantly, according to the company, thanks to the lifting of the Covid-19 restrictions by the Chinese government.

Operating cash flow and the balance sheet remain robust and the company's total interest-bearing debt ratio and net gearing ratio have both decreased to industry-low levels of 39.3% and 28.5%, respectively, the developer said.

For the second half, although the property market will still be confronted with many challenges, "with the implementation of supportive policies such as expanding domestic demand and mitigating risks, the confidence of businesses and residents will gradually recover," the company said.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

August 29, 2023 20:14 ET (00:14 GMT)

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