Shui On Land sees robust business results in 2017
Shui On Land Ltd, a developer renowned for its Tiandi-series projects in several Chinese cities, posted solid business growth for 2017 due to improved sales margin and positive contribution from asset divestments.
Total property sales, including recognized property sales, disposal of investment properties and equity in subsidiaries, as well as turnover of associates, rose 38 percent from 2016 to 30.3 billion yuan (US$4.78 billion) last year, the Shanghai-headquartered company said in a filing to the Hong Kong stock exchange on Wednesday.
Profit attributable to shareholders jumped 53 percent year on year to 1.67 billion yuan, according to the company.
"Despite the fact that 2017 was a very challenging year, we delivered solid revenue growth and a stronger balance sheet," said Vincent Lo, chairman of Shui On Land. "The commendable results are mainly due to strong contracted sales in the previous year (2016), the contribution from a number of value-realising transactions, resulting from our asset light strategy, our strong brand, high quality portfolio of commercial assets, as well as our solid foundation in the residential property sector."
Rental and related income from investment properties climbed 14 percent annually to 1.96 billion yuan amid improved occupancy rates and higher renewal rental rates at its existing Shanghai portfolio as well as higher contribution from three newly opened retail properties in the city, the company said.