With the Pearl River Delta, Yangtze River Delta and Bohai Rim Region as its key property development areas, China Vanke saw its total land reserve and revenue reach 901,000 square metres and 6.15 billion yuan (US$768 million) for the six months ended on 30 June 2006, representing an increase of 51.9 per cent and 53.2 per cent year-on-year, respectively.

During the same period, China Vanke realized a sales area of 1.22 million square metres, up 33.2 per cent from the corresponding period last year. Its sales revenue in turn jumped to 7.39 billion yuan (US$923 million), up 27 per cent from a year ago.

As such, China Vanke reported an increase of 52 per cent in turnover to 6.24 billion yuan (US$780 million) as the company announced its 2006 interim results yesterday. Its net profit also surged by 58.9 per cent from the previous year to 1.27 billion yuan (US$158 million).

In the first half of 2006, China Vanke acquired 36 new projects, taking its land bank to 15.65 million square metres in terms of gross floor area by the end of June 2006.

To finance its future development, such as resource integration and property project acquisition, China Vanke would raise about 4.2 billion yuan (US$525 million) by private placement of about 700 million A shares.

China Resources, China Vanke's largest shareholder that currently holds a 15.17 per cent stake, agreed to buy no more than 110 million new shares from China Vanke. The new share sale will push up China Resources' shares in China Vanke to 15.7 per cent of the total.

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