Longfor reports H1 turnover increase

Longfor Group Holding Ltd, one of the major property developers in the country, reported a 56.4 percent year-on-year increase in turnover to reach 94.8 billion yuan ($13.9 billion) in the first half of 2022, according to its interim report.

The Hong Kong-listed developer's contracted sales of property development stood at 85.81 billion yuan and the gross floor area of recently acquired land reserves hit 2.26 million square meters. In the first half of this year, Longfor achieved a net profit attributable to shareholders of 7.48 billion yuan, with gross profit growing year-on-year to 20.15 billion yuan and a gross profit margin of 21.3 percent.

With a 3.99 percent annual interest rate and a 10.1 percent proportion of short-term debt due within a year of the end of the reporting period, Longfor was almost free of debt pressure. The group's cash to short-term debt ratio (cash in hand divided by debt due within one year) was 4.07 and its debt to asset ratio was 68 percent, satisfying the regulator's "three red lines" requirement six years in a row.

The group's operational income from commercial investment, rental housing and property management increased by 26 percent year-on-year to 11 billion yuan. Rental income from investment properties reached 5.9 billion yuan, an increase of 23 percent from the previous year.

In the first half of this year, Longfor completed 76 projects with a total of 52,500 residential units on schedule and entered the top 10 list of 33 cities in terms of real estate sales. The Yangtze River Delta region was the biggest sales contributor, accounting for 34.6 percent of the group's total sales.

Jin Siying contributed to this story