Evergrande Profit Falls 23% as Property Marketing Costs Rise
By-
Revenue rose 13% to 87.5 billion yuan as home sales rose
-
Borrowings rise by 28% as Evergrande goes on buying spree
China Evergrande Group, one of China’s most-indebted listed property developers, said first-half profit fell 23 percent as rising sales were offset by higher costs for selling homes and servicing debt.
Core profit, or profit excluding property revaluations and foreign-exchange losses, fell to 7.8 billion yuan ($1.2 billion) from 10.2 billion yuan a year earlier, the company said in a statement to the Hong Kong stock exchange Aug. 30. Revenue rose 13 percent to 87.5 billion yuan.
Evergrande in August raised its pre-sales contract target to 300 billion yuan, the highest goal among mainland builders, amid a turnaround in China’s housing market. The developer said it will work on expanding its land banks in the second half to meet its sales targets, and will also pursue “cost-effective” ways to acquire projects, such as mergers and acquisitions…
Evergrande Profit Falls 23% as Property Marketing Costs Rise
