CHINA Vanke Co., China’s largest residential property developer, yesterday said its first-quarter core profit fell 58.9 percent from a year earlier, as it sold and completed fewer properties.

    The Shenzhen-based developer’s sharp drop in profit reflects a slide in China’s property sector that prompted the central bank to take steps to boost the market.

    The company said the year-on-year fall was due to a high starting base and lower margins, but it expected to see a growth in profit for the full year.

    Vanke said its core profit was 628.7 million yuan (US$101.52 million) in the January-March period, compared with 1.5 billion yuan a year earlier.

    Net profit slipped 57.5 percent to 650.2 million yuan, down from the 1.53 billion yuan recorded during the same period in 2014, while revenue declined 6.4 percent to 8.9 million yuan from the 9.0 billion yuan recorded in the first quarter last tear.

    In efforts to bolster a then-slowing housing industry, which accounts for some 15 percent of gross domestic product, China in February cut interest rates and bank reserve requirements. It also lowered down payment levels, as well as offering bigger tax breaks in March.

    “Completed projects in the first quarter this year only accounted for full-year’s 5.5 percent, lower than last year’s 6.6 percent,” Vanke said in its statement. “According to our current forecast, we will still see a growth in full-year net profit.”

    Vanke said its net profit margin dropped to less than 8 percent from 16.1 percent a year ago, hurt by fewer sales in first-tier cities and higher land costs coupled with declining home prices. (SD-Agencies)