October 25 -- China Vanke (000002.SZ,RCode::200002:) posted a 9.5 percent year-on-year increase in net profit to 3.58 billion yuan during the first three quarters on a 31 percent increase in revenue to 29.31 billion yuan, reports Soufun.com, citing a company filing.

According to the filing, third quarter earnings rose 31.89 percent to 606.06 million yuan. During the first nine months, transaction value rose 35.9 percent year-on-year to 97.08 billion yuan, while transaction area increased 39.9 percent to 8.41 million square meters.

The largest property developer in China posted a 7.3 percent year-on-year and 6.4 percent quarter-on-quarter increase in transaction value in the third quarter to 32.07 billion yuan. Transaction area rose 0.7 percent year-on-year and 7.7 percent quarter-on-quarter to 2.82 million square meters.

According to the report, 20 property developers, including Gemdale Corporation (600383) had released third quarter earnings, and the numbers showed that despite the tightening policies, the companies managed to post significant year-on-year increases in transaction value. However, net profit growth was limited compared with the same period a year ago.

According to board secretary Tan Huajie, compared with the first nine months, China Vanke expects to post a huge year-on-year increase in full year 2011 net profit as it anticipates a significant increase in settled income in the fourth quarter.

The total number of transactions to be settled in the fourth quarter will exceed the total recorded during the first three quarters, said Tan.

Vanke had set a target of 140 billion yuan of transactions for 2011, which the company is set to achieve, given transaction value of 138 billion yuan posted through the end of the third quarter, according to the report.

China Vanke did not reduce its construction plan for 2011 despite the tightening policies as it had relatively low levels of inventory.

New construction area totaled 11.39 million square meters through the end of the third quarter, accounting for 85.7 percent of its annual target. However, the growth in the total new construction area in China had been declining since the end of 2010.

Vanke had cash or cash equivalents totaling 33.9 billion yuan through the end of the third quarter, exceeding the total of 23.78 billion yuan of total interest-bearing liabilities. It had an average debt ratio of 30.29 percent, below the industry average.

Shares of Vanke were up 0.14 percent to trade at 7.20 yuan per share at 9:51 today.