Singapore-listed Chiwayland International Limited and its subsidiaries recorded a decline to 8.6% in its gross profit margin in H1 2014, mainly attributed to the higher revenue and gross profit contribution from fixed price housing units.
“Fixed price housing projects generally yield lower margins. In addition, the decrease was also attributable to the absence of higher margin projects in Q2 2014 and H1 2014,” the group said in a statement.
However, its gross profit saw a five percent increase from RMB3.9 million to RMB85.8 million in the first half of the year. Profit after tax and minority interest for 1H 2014 declined by 29 percent to RMB10.7 million.
Following its listing on the SGX, Chiwayland has also made its first step to establish a presence in Australia, via a joint venture with Property Solutions.
Kevin Qian, Executive Chairman and CEO of Chiwayland said, “We believe in our long-term prospects, underpinned by China’s steady economic growth and disposable income growth. Our recent foray into Australia via a JV, to ride on the demand for Australian properties, also paves the way for our regional expansion.”
The China-based property player traded on the main board of the Singapore Exchange (SGX) for the first time last month.
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
