China State Construction Engineering sees profit rise 34.4pc
China State Construction Engineering posted a 34.4 per cent year-on-year rise in net profit in the first six months of the year to 11.8 billion yuan (HK$14.8 billion).
China State Construction Engineering (CSCEC), the mainland’s largest real estate conglomerate, posted a 34.4 per cent year-on-year rise in net profit in the first six months of the year to 11.8 billion yuan (HK$14.8 billion).
But the state-owned firm warned in a statement to the Shanghai Stock Exchange on Sunday of challenges arising from a property market downturn, tight credit and local government debts.
The conglomerate suffered a net cash outflow of 7.4 billion yuan in the first half. It controls Hong Kong-listed China State Construction International and China Overseas Land & Investment, the biggest Hong Kong-listed mainland developer in terms of market capitalisation.
“As the company is already the world’s biggest construction and property firm, the biggest challenge is no longer scale but efficiency of operation,” it said, adding that it would closely watch progress in major railway and light rail projects and pursue breakthrough in ports, water and road deals in the second half.
The biggest challenge is no longer scale but efficiency of operation
The company’s shares opened slightly up on Monday but later pared their gain to a loss of 0.3 per cent at 11am, when they were trading at 3.18 yuan.
