Shimao Property, a real estate developer on the mainland, posted a 56 percent drop in net profits to 919 million yuan in the first half, while its revenue nosedived 24 percent to 1.8 billion yuan.

Chairman Hui Wing-mau said the company will look for acquisition or buy back its own stakes to support its share price. Hui said he has already purchased some stakes when the developer's stock price dipped from HK$8 to almost HK$4 per share within a month.

"By the end of this year, the company may generate 8 billion yuan from sales turnover. We are still analyzing the opportunities for acquisitions or buybacks," Hui said.

Shares of Shimao Property lost another 1.25 percent or HK$0.05 in price yesterday, closing at HK$3.95.

Regarding the sluggish real estate market on the mainland, Hui said he is confident that the property market will thrive in the beginning of next year.

"Around 10 million rural citizens on the mainland migrate to the cities and 3-5 million couples get married every year. We should not forget that there is still an actual need for properties," Hui said, adding that the market will probably stage a gradual rebound in March 2009.

The property developer has lowered its contracted sales target in the next three years. The contracted sales target in 2008 has been reduced by 20 percent to 14 billion yuan, while a 4.4 billion yuan sales target has already been met in the first half.

Executive Director Jason Hui said 17 residential projects will be completed in the second half, with a total gross floor area (GFA) of 1.6 million sq m, while 40 percent of them are pre-sold.

Meanwhile, the available-for-sale inventories will be around 410,000 sq m. The company's total saleable GFA will reach 2 million sq m by the end of 2008, which is a double of last year.

The following third and fourth quarter will be the peak selling periods for residential properties, Hui said.

"We expect 10 percent of our income are generated from the investment properties in the second half," Hui said.

(HK Edition 09/26/2008 page2)