HONG KONG, March 26 Property giant China Vanke
Co , the subject of a long-running battle
for boardroom control, said on Sunday its core profit last year
rose 19 percent, thanks to record sales.
The nation's second-biggest home builder said core profit,
which excludes revaluation gains, rose to 20.9 billion yuan
($3.04 billion) from 17.6 billion yuan in 2015. Analysts were
expecting a profit of 21.1 billion yuan according to Thomson
Reuters SmartEstimate data.
The property giant has been in crisis since late 2015 as
financial conglomerate Baoneng Group built up a 25 percent stake
to become its largest shareholder and sought to oust management.
But last week Vanke said state-owned Shenzhen Metro Group, a
key ally, became its largest shareholder in terms of voting
rights after a proxy agreement with its third-biggest
shareholder, paving the way for the metro operator to take
control of the homebuilder.
"The group sincerely hopes that the shareholding issue will
be resolved as soon as possible, allowing the group to be back
on track for normal operations and creating larger values for
shareholders and the society," the company said in a statement
to the Hong Kong stock exchange.
In a statement to the Shenzhen stock exchange on Sunday,
Vanke said Baoneng had promised to maintain Vanke's independence
and would not use its position to hurt the developer's
Net profit for 2016 rose 16 percent to 21 billion yuan,
while revenue stood at 228.9 yuan, representing a year-on-year
increase of 24 percent.
"This year, the central government will continue to
implement policies according to cities to prevent market
overheating and begin formulating long-term mechanisms for the
promotion of steady and healthy development of the property
market," Vanke said.
Beijing has been stepping up efforts to cool the property
market on concerns about a bubble. Measures have included
raising home purchase requirements and imposing price limits on
Chinese developers China Overseas Land & Investment Ltd
and Country Garden Holdings Company Ltd
last week reported solid growth in 2016 but said there might be
challenges for sales in some areas this year due to steps taken
by the government to rein in the market.
State-owned China Overseas Land said it was cautiously
optimistic about the market and set a modest sales target for
2017, the same level it achieved last year.
($1 = 6.8803 Chinese yuan renminbi)
(Reporting by Clare Jim; Editing by Elaine Hardcastle, Greg