CentraLand, the Zhengzhou-based property developer, announced a net profit of RMB12.2 million ($2.5 million) and revenue of RMB155 million in the financial year ended 31 December 2009 (FY2009).

Group revenue declined to RMB155 million in FY2009 from RMB713.7 million in FY2008. This is due mainly to the inherent lumpiness of revenue recognition for China-based real-estate developers.

In FY2009, the group recognised RMB106.3 million or 68.6% of the year’s total revenue from the sale and delivery of remaining units in J-Expo I. The balance 31.4% or RMB48.6 million of group revenue was attributable to rental income and property management fees.

But in FY2008, the group recognised revenue amounting to RMB614.5 million from its wholesale centre for small consumer commodities, J-Expo I and RMB81.4 million from high-end residential development, Guoling Shanshui Phase I and Phase II.

CentraLand says the group’s rental income doubled to RMB41.9 million in FY2009 due mainly to the leasing of commercial retail units in Guoling Shanshui in the second half of 2009 as well as the group’s acquisition of the master tenancy of Jiancai Gang, a wholesale centre for building materials. Besides rental income from the sub-leasing of space within Jiancai Gang, the group also recognised its maiden contribution of RMB6.7 million from the provision of property management services to Jiancai Gang since the acquisition in the last quarter of the year.

The group says it will be commencing the construction of several previously announced projects in FY2010. These include J-Expo II, Nongye Road Project and Guoling Shanshui Phase III Stage 2.

Project updates
As at February 22, 2010, the rate of registration of interest at the soft launch for J- Expo II, was an overwhelming 136.8%. The group received 3,419 down-payments of RMB1,000 refundable deposit each from interested parties indicating their interest to ballot for J-Expo II’s limited 2,500 retail units when pre-sales starts later in the year.

Guoling Shanshui Phase III Stage 1 also saw an encouraging take-up rate of 28.9% despite launching pre-sales during the harsh winter season in end October last year, a typically off-peak period for property-buying. Out of a total of 540 units released for Guoling Shanshui Phase III Stage 1, the group has pre-sold 156 apartment units as at February 22, 2010.