China Resources Land, a leading developer in the real estate industry, has announced a nearly 30% year-on-year increase in net profit for the first half of 2021. This growth can be attributed to the company's investment property business and asset-light management services.
In the first six months of the year, China Resources Land recorded a net profit of 13.74 billion yuan ($1.89 billion), while revenue remained stable at approximately CNY72.97 billion.
The company highlighted that rental income from shopping malls and the hotel sector experienced significant growth during this period, thanks to the Chinese government's decision to ease Covid-19 restrictions.
China Resources Land also confirmed that its operating cash flow and balance sheet remain strong. The company has successfully reduced its total interest-bearing debt ratio and net gearing ratio to industry-low levels of 39.3% and 28.5% respectively.
Looking ahead, China Resources Land anticipates that the property market will continue to face various challenges in the second half of the year. However, they expressed optimism due to the implementation of supportive policies aimed at expanding domestic demand and mitigating risks. These policies are expected to gradually restore confidence among businesses and residents.