Property Developer Vows to Reduce Debt - China
China's third biggest home developer is not the only developer vows to reduce debt ratio during this year's interim reporting season. When China Evergrande announced result the company vows it would focus on reducing gearing to improve its business growth in the upcoming years.
Evergrande reported today core profit, which excludes property revaluation gains, came in at RMB 27.30 billion (USD4.12 billion) for the first half ended June, up from RMB7.8 billion during the same time period a year ago, thanks to higher housing selling price and a full redemption of high-interest perpetual bonds.
Earlier this year, the company sold its stake in China's Vanke and pursued several rounds of capital increase program, raising around RMB30billion.
For unaudited interim result, the developer reduced its net debt ratio to 240% by the end of June this year from 432% at the end of June 2016. Debt ratio was improved to 75.5% at the first half from 79.75% of a year ago.
- APMR News