BRIEF: Greentown defies property downturn with healthy growth

Greentown China Holdings Ltd. (3900.HK) reported strong growth in the first half of the year, even as most of its peers struggled in the ongoing correction for China’s property market. The developer’s revenue totalled 69.6 billion yuan ($9.8 billion) in the six-month period, up 22.1 % year-on-year, according to its interim report filed last Friday.

Its core net profit rose by a similar 27.5%, reaching 4.9 billion yuan. But its net profit fell 19.6% to 2 billion yuan as a result of lower margins and impairment provisions. Contract sales for the period totalled 126.5 billion yuan, and the company added 15 new projects with a total gross floor area of 1.31 million square meters.

Greentown has fared relatively better than most of its peers thanks to its conservative stance following a previous company debt crisis before the current property downturn. The company has a current bank balance-to-borrowing ratio of 2.1 times. Its average interest cost of borrowings now stands at 4.0%, down from 4.4% in 2023.

Reporting by Teri Yu

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