Poly Profits Up 32 Percent Despite Govt Restrictions

While there has been wide speculation of financial challenges for China’s real estate developers in the face of the current market downturn, at least one major player is reporting rising profits.

Poly Real Estate, the country’s second largest developer by market capitalisation recently reported that its 2011 profits were up 32 percent compared to 2010.  According to a recent Xinhua story,

Poly Real Estate Group, China’s second largest property developer by market value, said Tuesday that its preliminary net profit rose to 6.51 billion yuan ($1.03 billion) in 2011, a year-on-year increase of 32.39 percent.

Revenue rose 31.02 percent from one year earlier to 47.03 billion yuan. Earnings per share increased to 1.1 yuan, the developer said in a statement filed to the Shanghai Stock Exchange.

The company’s home sales rose 10.69 percent year-on-year to 73.24 billion yuan in 2011, while transaction area fell 5.54 percent to 6.5 million square meters, the statement said.

Although the company did not release detailed breakdowns of its revenues, Poly’s profits were most likely aided by its successful commercial real estate projects, as its rivals, such as Vanke have suffered from their reliance on residential developments.