Hopefluent profit up 27% to HK$75.5mn

The group strives to capture market opportunities and actively expand its business network in the second half of 2011.

Hopefluent Group Holdings Limited (“Hopefluent”), one of the largest property agents in China, announced its interim results for the six month ended 30 June 2011.

For the six months ended 30 June 2011, the Group recorded a turnover of HK$749.1 million, up by 33% against HK$563.9 million in the corresponding period last year. Profit attributable to shareholders rose from HK$59.5 million to HK$75.5 million, a year-on-year increase of 27%. Basic earnings per share were HK16.48 cents (2010 restated: HK15.23 cents). Board of Director recommended payment of interim dividend of HK3.5 cents per share.

During the period under review, the primary and secondary property real estate agency service businesses of the Group registered a turnover of HK$440.4 million and HK$246.8 million respectively, accounting for 59% and 33% of the Group’s total turnover. The remaining 8% or HK$61.9 million was derived from the property management business. Geographically, Guangzhou contributed about 46% of the total turnover and about 54% came from outside Guangzhou.

Mr. Fu Wai Chung, Chairman of Hopefluent, said, “In the first half of 2011, the Central Government has launched a series of austerity measures to stabilise the property market in the PRC aimed at fending off speculation and suppressing overheating property prices. The most noteworthy of these measures were property purchase limits and restricting mortgage conditions. As such, transaction volume in first tier cities has dropped noticeably and the property market began to show signs of cooling down under the resulting pressure. However, based on our steady expansion strategy, and utilizing our solid foundation in first-tier cities and expansion of property real estate agency service business in second- and third-tier cities to meet market demand and leverage project development, the Group managed to capture the growth opportunities and achieve continuous steady growth in results.”

Accoriding to a Hopefluent report, the Group is providing agency services for a number of renowned developers including Vanke, Evergrande, Poly, Gemdale, Star River, Citic, Agile Property, KWG Property, New World China, Sun Hung Kai Properties, Favorview Palace and Asian Games City.

At the same time, the Group is also striving to enhance its sales networks in second and third-tier cities to expand its geographical coverage and market share. Regarding the secondary property real estate agency service business, the Group plans to expand the number of branches steadily while closely monitoring market conditions. Meanwhile, it is enlisting more experienced sales professionals to bolster the Group’s overall competitiveness so as to expand its business network and seize the secondary property market opportunity as it develops.

Mr. Fu concluded, “We believe that the Chinese market will be affected by the changes in the global economic environment and austerity measures may be launched by the Central Government. Nevertheless, with the vigourous Chinese economy and rising living standard, together with the rapid ongoing urbanisation, the Group remains positive about the long-term development prospects of the PRC property market. With our brand, professionalism in service and strategic property business and geographical coverage, we can optimise the upcoming opportunities in the market, bringing satisfactory returns to our shareholders.”