Poly Real Estate Group (600048) recorded a 32.74 percent year-on-year rise in 2011 net profit to 6.53 billion yuan on a 31.04 percent increase in revenue to 47.04 billion yuan, reports Yicai, citing a company filing. Earnings per share hit 1.10 yuan.

Based on total equity of 5.95 billion shares, the property developer plans to convert two shares and distribute cash dividends of 2.15 yuan for every 10 shares held.

Poly Real Estate said it recorded stable sales growth in 2011 as it rolled out mainly small and medium-sized homes to match market demand.

For the year, transaction value rose 10.69 percent from 2010 to 73.24 billion yuan, while transaction area fell 5.54 percent to 6.5 million square meters.

Due to effective controls on administrative and sales-related costs, Poly Real Estate recorded a 2.95 percentage points increase in the gross profit margin to 36.17 percent. Finance charges rose to 390 million yuan in 2011 due to higher interest on borrowings.

Poly Real Estate completed real estate investments totaling 64.7 billion yuan last year, and collected revenue of 66 billion yuan from property transactions, up 15.65 percent from 2010. Borrowings totaled 36.9 billion yuan.

At the end of 2011, the property developer had cash or cash equivalents of 18.15 billion yuan, and its debt ratio fell 0.55 percentage point to 78.43 percent.

Poly Real Estate entered the Hefei, Zhengzhou, Shijiazhuang, Cixi, Deyang, and Tonghua markets in 2011, and added 23 new projects. The average floor price of the new developments hit 2,582 yuan per square meter.

According to Poly Real Estate, the property market will be volatile in 2012, and it is unlikely China will reverse its curbs on the real estate market this year.

The property developer said it will further raise the proportion of small and medium-sized homes, a segment which has inelastic home demand, and will tap bank loans, real estate funds, and other channels to raise funds.