China Overseas Land Q3 operating profit tumbles 47%, warns of risks

Source:Reuters-Global Times Published: 2014-10-21 23:18:06

Property developer China Overseas Land & Investment said Tuesday its operating profit plummeted nearly 50 percent in the third quarter amid China's slowing economic growth, and warned that future downside risks remain.

The fifth-largest Chinese developer said operating profit in the July-September quarter fell 47 percent to HK$3.34 billion ($430.53 million), down from HK$6.35 billion in the same period a year ago.

China's developers are battling with excess supply and tight liquidity in the industry as the country faces its weakest pace of growth in 24 years this year.

"The downside risks in the economic development of China are sustained," the company said in a statement. "Improvement in both the transaction volume and home prices has yet to be seen while the land market was relatively quiet."

For the first nine months of the year overall, the company recorded a 13.4 percent rise in operating profit to HK$22.1 billion.

China Overseas Land's contracted sales in the third quarter were HK$32.6 billion, up 2.8 percent from HK$31.7 billion a year ago.

The company said "there was no obvious improvement in the sales performance of the China property market" during the quarter, but said that by the end of September it had achieved 75.4 percent of its annual sales target of HK$140 billion.



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