Sino Harbour Property profit up 17.3% to $13.03mn

Through delivery of a gross floor area of approximately 43,600 sq m. revenue soared by 19.7% to $49.67mn.

Sino Harbour Property Group Limited (“Sino Harbour”), a recognised developer of residential and commercial properties in the fast growing cities within Jiangxi Province, China, announced its third quarter results for the nine months ended 31 December 2011 (“the period under review”).

During the period under review, the Group’s revenue increased by 19.7% to RMB312.6 million ($13.03mn) mainly derived from the delivery of a gross floor area (“GFA”) of approximately 43,600 sq m, of residential and commercial units at Nanchang Honggu Kaixuan. Gross profit surged by 43.7% to RMB152.4 million, while gross profit margin improved to 48.7% (FY2010/11 Q3: 40.6%), mainly attributable to larger proportion of sales recognised from commercial units with a significantly higher margin compared to residential units. Net profit rose by around 17.3% to approximately RMB82.9 million from RMB70.7 million in the same period last year. Net profit margin was maintained at 26.5%.

The Group continued to maintain a healthy balance sheet and was in a net cash position. As at 31 December 2011, the Group had total cash and bank balances of approximately RMB135.7 million.

Mr Shi Feng, Deputy Chairman, Executive Director and CEO of Sino Harbour, said, “We are pleased to have achieved satisfactory financial results with improved profit margins despite the tighter restrictions on property purchases and housing loan policy in China during the second half of 2011. Sino Harbour continued to maintain its stable financial position, flexible operational scale and ability to quickly respond to macroeconomic measures. With increasing urbanisation and rising household income driving the economic growth of Jiangxi Province, we have strong confidence in the prospects of the property market in the region as well as elsewhere in China.”

“Looking ahead, we expect the property market of Jiangxi Province will continue to grow driven by the accelerating economic development of the central part of China. Moreover, the policies relaxing mortgages implemented at the beginning of 2012 and the completion and gradual entry of affordable housing into the property market should further stimulate market growth. We have already speeded up our project development to capture the high growth potential from rising market demand in Jiangxi Province and remain committed to bringing high value to our shareholders in the long run,” Mr Shi concluded.