Powerlong Real Estate profit up 46.5% in 2020

The real estate firm’s profit amounted to $10.5b (RMB8.81b) in 2020, whilst its contracted sales amounted to $97.8b (RMB 81.55b).

Powerlong Real Estate Holdings Ltd. reported its profit rose 46.5% to $10.5b (RMB8.81b) in 2020 from $72.2b (RMB6.01b) in the previous year.

The firm’s revenue rose 36.3% to $42.6b (RMB35.49b), attributable to increases in the group’s business segments.

Rental income and income from provision of commercial operational services and residential property management services was recorded at $3.8b (RMB3.23b), higher by 15% in 2019.

Moreover, contracted sales also increased 35.1% to $97.8b (RMB81.55b) in 2020 from $72.4b (RMB 60.35b) in the previous year.

The group attributed the sales increase to its strategic focus on the Yangtze River Delta and the Guangdong-Hong Kong-Macau Bay Area as well as efforts in strengthening its product research and development and precise positioning.

Moreover, the group linked the improved sales performance to the “369” model adopted to speed up construction, sales and collection of sales proceeds for residential projects. It also localized sales strategies to capture local market.

It also delivered 11 large projects, each with a contracting sale of more than $2.4b (RMB2b). Its key contributing projects were located at Jinhua, Ningbo, Taizhou, Shaoxing, Wenzhou, Hangzhou, Haikou, Changzhou, and Zhuhai.

The contracted sales area in 2020 amounted to 5.3m square metres, representing an increase of 41.4% from 3.7m sqm in 2019.

The group will further increase its contracted sales in 2021 to RMB 105b by upgrading its “369” development model as well as study from benchmarking enterprises to enhance marketing capabilities and shorten cycle of development and sales.

It will continue focusing on the Yangtze River Delta and the Guangdong-Hong Kong-Macau Bay Area, whilst exploring other premium areas. The group also plans opening up to 13 shopping centres this year.