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Evergrande's core profit jumps 250% as property prices climb

Bloomberg Published on Tue, Aug 29, 2017 / 7:49 AM GMT+8

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(Aug 29): China Evergrande Group, the developer controlled by billionaire Hui Ka Yan, reported a 250% jump in core first-half profit as property sales soared and prices climbed.

Core profit was 27.3 billion yuan ($5.56 billion), the company said in a filing to Hong Kong’s stock exchange Monday. Revenue gained 114.8% to 188 billion yuan. Evergrande cited higher selling prices and a jump in sales -- and said it expected to beat a 450 billion yuan sales target for the year. Core profit excludes one-time items.

The company, targeted by short sellers this year for its high debt levels, pledged a switch to low levels of debt, leverage and costs. It targets net gearing of 70% from 2020, compared with about 240% now, it said.