As the Chinese government tightened its grip on the real estate sector in a bid to suppress soaring house price inflation, Greenland's net income in the six months to June was 4.66 billion yuan (US$704 million), up by 1.3 per cent from a year ago and below analysts' estimates. Revenue jumped 16.6 per cent to 126 billion yuan.
Excluding one-off gains, the company's underlying profit fell 18.7 per cent year on year to 4 billion yuan.
Greenland predicts the government's measures to cool the property sector will continue in the second half, but according to a report in the South China Morning Post, it believes serviced apartments and hotels may become bright spots as housing demand remains strong.
Greenland has also been accelerating its diversification into non-property businesses such as finance and commerce.
Greenland looks to serviced apartment “bright spot” as earnings flatten
Shanghai-based Greenland Holdings, China’s fourth-largest developer, has reported flat earnings for the first half of this year.
“"It’s been really good. For a first event, the numbers are good, and we’ve had some very positive feedback from the owners that we’ve invited here. We’ve had some really good conversation with partners and potential owners. The atmosphere has been really good - I think the tours of Bangkok yesterday which allowed people to get to know each other on an informal basis was a great idea. I’m sure the event will grow from here."
Douglas Martell, chairman & CEO, Onyx Hospitality Group
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