Gemdale's H1 profits up 5.1%

BEIJING - Gemdale Corporation, one of China's leading housing developers, said Wednesday its net profit rose 5.1 percent year-on-year in the first half to 502 million yuan ($79.7 million).

Gemdale said in a statement filed with the Shanghai Stock Exchange that the increase was driven by its aggressive promotional strategies.

Its revenue rose 25.5 percent from a year earlier to 6.5 billion yuan. Earnings per share remained flat at 0.11 yuan, the developer said.

Gemdale's home sales rose 19.6 percent year-on-year to 13.5 billion yuan in the first half as the company has sufficient sellable apartments, it said.

China has tightened its curbs on the property sector since 2010, as home prices rocketed beyond the reach of average wage earners.

The government has restricted home purchases in several cities while requiring higher down payments and introducing property taxes. The clampdown has gradually cooled the market.

Senior Chinese leaders have repeatedly pledged that the country will continue its property tightening measures despite a slowdown in national economic growth.

Gemdale's shares dropped 2.7 percent to 5 yuan on Wednesday.