According to the 2008 Semiannual Report from Poly Real Estate Group Co., Ltd. (600048), a leading real estate enterprise, its 1H 2008 revenue was RMB 5.381 bln, a 156% YOY increase, while net profit was RMB 1.034 bln, a 272% YOY increase. Nevertheless, the stakes of the company's Top 10 holders of tradable shares, accounting for 12.9% of total shares outstanding and 30.1% of total tradable shares outstanding, decreased in comparison to 2007. In addition, the number of Poly Real Estate shareholders reached 59,000 as of 31 Mar 2008 and 96,000 as of 30 Jun 2008. In 1H 2008, Poly Real Estate sold properties totaling 1.314 mln sq. meters with settled sales valued at RMB 10.7 bln, equal to 44.6% of its annual target.

According to the 2008 Suning Universal Co., Ltd. (000718) Semiannual Report, its 1H 2008 revenue was RMB 2.03 bln, a 148% YOY increase, while net profit was RMB 550 mln, a 461% YOY increase, and EPS reached RMB 0.73. Suning Universal plans to allot 9 bonus shares and to pay a cash dividend of RMB 1.00 for every 10 shares held. The performance increase is attributed to the injection of an 84% stake in Pudong Company and a big increase property sales with correspondingly higher average sale prices. During the reporting period, Suning Universal earned RMB 830 mln in cash from real estate sales and realized RMB 1.38 bln in contract sales.

In general, both aforementioned companies assert that the medium- and long-term development outlook of the real estate industry continues to be optimistic.


Source: Securities Times

Date: 25 Jul 2008

CN01/MR/LZ/BT/MM