The average price of its real estate prices 5% China resources Land 4.2 billion Hong Kong dollar smashed to the first-tier city

Just after the allocation of 4.24 billion Hong Kong dollars by the allocation of China Resources (01109.HK) is clearly not a shortage of money, its debt ratio has been reduced from the previous 46% to 29.7%, the hands of the cash increased to HK $9 billion.　　June 3, Wang Yin, managing director of China Resources Land, said after the shareholder meeting that the HK $4.24 billion raised by the issue of new shares would be used to increase land reserves because of the relatively reasonable prices of the existing lands. However, Wang Yin has been reluctant to disclose this year's purchase of land reserves of specific plans, only said, "from the company's resource allocation, hope that more to the first-tier cities such as Beijing, Shanghai, Guangzhou tilt, these places are now relatively reasonable land prices." "Prior to May 18, CRC took advantage of the recent surge in Hong Kong's capital markets, placing 300 million shares in the market and collecting net income of about HK $4.24 billion."　　After the placement, the shareholding ratio of the large shareholder China Resources Group was diluted from 67.21% to 63.19%. HK $4.24 billion increase in land reserve Wang Guohua, a manager of China Resources and Planning Department, said that because of the current net liabilities of CR, which was only HK $9 billion, the amount of cash had increased, and the absolute liabilities had dropped by about HK $2.5 billion compared with the beginning of the year.　　According to the information previously provided by CRC, as at the end of 2008, the combined loan amount of CRC was about HK $21.093 billion, with cash and bank balances of HK $5.553 billion, and net liabilities to equity ratio of 46%. "So the purpose of our borrowing and financing for the market is not simply to reduce the debt ratio, our debt ratio is still relatively low."　　Wang Guohua said, to take advantage of the current land prices more reasonable opportunities to increase reserves.　　By the end of last year, the land reserve of CRC was 22.32 million square meters, distributed in 17 cities, while the holding company China Resources Group had a land reserve of 4.2585 million square meters. In this year's March 27 performance meeting, China Resources Land Chairman Song Lin has disclosed to reporters that this year has plans to the hands of the group to inject resources.　　In July last year, Huarun Land has purchased a number of sites from China Resources Group, which covers an area of 4.29 million square meters and 9.015 billion yuan. However, after the shareholders ' meeting on June 3, China Resources executives were desperately "Taiji" and refused to disclose whether they would buy land from the group.　　Wang Guohua said that either acquiring land from the parent company or buying land assets in the market is only a way of development. Wang Yin said the company's land-reserve strategy depended on several factors: debt ratios, borrowing capacity and land prices. "After the allotment, the debt ratio of China Resources is 29.7%, at a lower level." The company now has 9 billion Hong Kong dollars in cash, so the premise of land acquisition is there, and now the company is talking to some banks.　　Wang Yin said, "Any growth of real estate companies to buy land, at this stage the focus of investment in the first-tier cities, such as Beijing, Shanghai, Guangzhou and other areas." In addition, in some cities with relatively fast economic growth, we think that the current land prices are more reasonable. But it's hard.Body said how much money to invest in the land this year, because the government to launch the pace of land is difficult to grasp, even if the introduction, whether it is a problem.　　"By the end of May contract sales of 8.68 billion yuan to increase the real demand for land reserves is that this year, China resources sales has been buoyant."　　Wang Yin revealed that as of May 31, CRC has recorded a 8.68 billion yuan contract sales, accounting for 80% of the year's target, up 5.78 times times the same period last year, so the company will consider raising the annual sales target.　　Wang Yin said that in the first 5 months of this year, the sale of property in the mainland is good, the average fare increase of 5%, do not rule out the future increase in prices, he believed that the mainland housing demand is strong, in addition to rigid demand, in April and May, also saw investors enter the property market. "We are more optimistic about the future market." One economy is growing, the other is stabilizing the mainland stock market, and third, the government has introduced a series of policies to stimulate real estate, including lower mortgage rates, these are basic factors. In addition, the long-term factors have not changed, including 5 million of annual university graduates, 15 million of the urban population increased every year, the domestic major cities, the supply of land is limited, rigid demand is so large.　　There will probably be 6-7 new developments in the second half of this year, with a total area of about 1.1 million square metres. As of the end of May, the gross profit margin of CR land was at 31.4%, similar to that of last year, Wang Guohua pointed out that with the decline in construction costs and the rise in prices, it was confident that the gross profit margin of 09 would increase to 35%.　　China Resources Land has been locked 09 years of residential development settlement amount of 12.2 billion yuan, the average gross profit margin of the settlement project maintained at 31.4% level. In addition, China Resources Land also said that the recent rental level of its investment properties has increased. In the first 4 months of this year, income of about 300 million yuan, including the Shenzhen Resources Center, Shanghai Huarun Times Square and Beijing Huarun Building, the rental income increased by 8%, 16%, 1% respectively.