Sino-Ocean Group shows positive increase in H1

Sino-Ocean Group Holding Ltd, a Hong Kong-listed property developer, reported in its interim report a 14 percent year-on-year increase in its turnover in the first half year to 23.41 billion yuan ($3.4 billion).

According to the report, the developer reported a gross profit of approximately 4.311 billion yuan and contracted sales of around 43.01 billion yuan in the first half of this year, which improved its sales ranking by 23 places. It delivered 22,000 units of housing on schedule and entered the top 10 list in nearly 10 cities. The Beijing region was the biggest sales contributor for the company, accounting for 29 percent of the group's total sales.

With a focus on first- and second-tier core cities, the company added 420,000 square meters of the land reserve during the reporting period through the acquisition of a total of five new projects. Additionally, the Group has also signed contracts for around 21.3 million square meters of reconstruction projects, an increase of approximately 2.3 million square meters from the end of last year, mostly in important cities in the Greater Bay Area.

The group's financing cost stood at 5.07 percent in the first half of this year, despite a substantially tight financing environment for real estate. The company repaid more than 13 billion yuan in various interest-bearing debts, as well as 6.6 billion yuan in supply chain ABS, with all maturing liabilities being entirely repaid.

Even though it was affected by COVID-19, project rental income remained stable or slightly increased. As of the first half of this year, the company had 3,822,000 square meters of leasable area in operation and it had generated the full rental income of 2.64 billion yuan, an increase of 19 percent from the previous year.

Jing Siying contributed to this story