Poly Real Estate Group Co.Ltd said its net profit for the first half of 2018 rose 15.13% year over year to approximately 6.51 billion yuan, supported by the company's strong sales and improved margins.
The Chinese developer's revenue saw gains of 9.28% from the prior year to roughly 59.51 billion yuan.
Poly attributed the growth in net profit to its increasing property sales in recent years, tracking industry consolidation picking up speed, to the benefit of bigger players in the property sector. The company also saw its gross margin during the six-month period expand to 35.39% year over year, marking a 4.59-percentage-point rise.
Additionally, Poly recorded a 46.86% year-over-year jump in contracted property sales for the first six months of 2018 to approximately 215.31 billion yuan.
Looking forward, Poly said the real estate industry is facing big challenges in securing financing amid the Chinese government's efforts to clamp down on lending to sector participants, in a bid to eliminate property speculation.
However, taking into account the sturdy demand for residential property upgrades in China, the company believes the sector still provides many growth opportunities for developers, and as a major player, Poly would have a greater advantage in receiving financing and carrying out business expansion amid high levels of competition.
As of Aug. 13, US$1 was equivalent to 6.89 Chinese yuan.