Thursday 2011-08-25
August 25 -- Shenzhen World Union Properties Consultancy's (002285) net profit in the first half of 2011 rose 7.08 percent year-on-year to 147 million yuan, with earnings per share of 0.45 yuan, reports Securities Daily, citing a company filing.
Revenue increased 45.49 percent year-on-year to 790 million yuan in that period. World Union Properties predicts its net profit will rise less than 30 percent during the first three quarters.
During the first six months of the year, World Union Properties' agency sales area totaled 6.05 million square meters. Total sales value was 66.2 billion yuan, a year-on-year increase of 89.68 percent. The company's agency sales area accounted for 1.4 percent of total agency sales area nationwide over the same period.
World Union Properties’ real estate brokerage business dropped in the first half of 2011, as the transaction volume of second-hand homes in Shenzhen fell. World Union Properties said the proportion of total transaction area accounted for by first-tier cities continued to fall during the first half of 2011, while the proportion accounted for by second- and third-tier cities fell 0.26 and 0.36 percent points year-on-year, due to policies placing restrictions on real estate.
The real estate development industry's market concentration has improved significantly. The transaction values of the top 10 real estate development companies accounted for 13.5 percent of the real estate industry's total transaction value during the first half of 2011, up 3.3 percent points year-on-year.
World Union Properties plans to invest 21 million yuan of funds remaining from IPO proceeds, to acquire a 60 percent stake in Qingdao Yayuan Property Management, founded in 1999, which has first-grade property service qualifications. Yayuan Property Management generated revenue of 54.89 million yuan and net profit of 3.63 million yuan in 2010, and is expected to make profits of 4.39 million yuan in 2011.
Total revenue generated by China’s property service companies exceeded 250 billion yuan in 2010, with World Union Properties acquiring Yayuan Property Management in order to increase its revenue from this field.