PROPERTY developer Pan Hong on Friday (May 12) said it expects net losses for its 2023 financial year ended Mar 31.

 

The drop in revenue is due to fewer transfer of control of units from a property project compared to the previous year.

 

The development in question is the 978-unit Pan Hong Run He, as stated in a bourse filing by Pan Hong, which develops residential and commercial properties in China.

 

The company said, given that it is primarily engaged in the business of property development, revenue recognition is dependent on the launch of new projects and the transfer of control of sold properties.

 

Thus, the group&rsquo s revenue and profit looking across periods will appear irregular, it stated.

 

Details of the group&rsquo s performance will be set out in the company&rsquo s unaudited financial results for FY2023, which is expected on or before May 30.

 

In the meantime, the board is advising the company&rsquo s shareholders and investors to exercise caution when dealing in its shares, it said.

 

SINGAPORE Exchange-listed property developer Pan Hong is cautiously optimistic that core housing demand in China will improve as Chinese cities start to introduce measures to support the housing market.

 

In a filing to the Singapore bourse on Saturday (Jul 23) where it answered questions raised by shareholders regarding its annual report, Pan Hong said that the district government where its Run Ze Yuan project is located has initiated a &ldquo property coupon scheme&rdquo , under which local firms and property developers subsidise the local labour group in purchasing properties in the district.

 

Pan Hong added that it &ldquo will participate in (the) scheme, and foresees that (the) scheme would serve as an incentive for the recovery of investment appetite of potential property buyers.&rdquo

 

Since June, Pan Hong has been offering a &ldquo dynamic discount policy&rdquo to boost sales of the Run Ze Yuan project, while maintaining a certain profit margin.

 

This comes as property developers in China have been besieged by tough operating conditions, while market confidence and property prices have tanked in recent quarters. With several big highly-leveraged developers teetering in the balance, even as the global economy grows increasingly uncertain, demand for property is expected to remain tepid in the short to medium term.

 

Chinese cities &ldquo have started implementing stimulating or relieving measures to support the market, including a decrease in interest rates for first-time buyers, reduction of down payment proportions, and withdrawal of purchase limits&rdquo , Pan Hong went on to say. Since its projects are largely aimed at genuine home buyers, it is &ldquo cautiously optimistic&rdquo that core housing demand will improve and market confidence will progressively return.

 

Still, given the current market conditions, it said that it is adopting a more cautious approach when reviewing investment opportunities for longer-dated projects.

 

As at Mar 31, 2022, the group&rsquo s land bank spanned a total planned saleable gross floor area of 403,982 square metres in Huzhou and Shanwei.

 

The group has properties held under development and properties held for sale worth 573.59 million yuan (S$117.9 million) and 187.14 million yuan respectively, as at end-March.

 

Between Sep 29 and Oct 4, Pan Hong Holdings Group Pan Hong: P36 +1.02% substantial shareholder Wong Lam Ping increased his direct interest in the company from 5.07 per cent to 5.16 per cent.

 

Wong acquired 402,100 shares for a consideration of S$73,953 at an average price of 18.4 cents per share.

 

Wong and Chan Heung Ling hold 52.0 per cent and 48.0 per cent of the issued share capital of Extra Good Enterprises respectively, which brings Wong' s total interest in Pan Hong Holdings Group to 64.20 per cent.

 

Headquartered in Hong Kong, with its subsidiaries, Pan Hong Holdings Group is a property developer focused on developing residential and commercial properties in the second and third-tier cities in China.

 

For its fiscal year 2021 (FY21, ended Mar 31), the group' s revenue increased to 1,340.9 million yuan (S$282 million), compared to 643.9 million yuan in FY20, on the back of a transfer of control of residential units of Pan Hong Run He to buyers.

 

The group is expected to report its H1 FY22 (ended Sep 30) results by mid-November.