Country Garden, a Guangdong-based property developer, posted a 28.5 percent decline in net profits to 1.02 billion yuan in the first half, dragged down by the fair value loss on equity swap and more tax provision.

The company's revenue increased by 23.3 percent to 7.44 billion yuan, among which sales from property development rose 27.3 percent to 6.93 billion.

However, the first-half earnings were partially offset by the non-cash losses and expenses. Country Garden booked a provision on land appreciation tax (LAT) amounting to 665 million yuan, the provision was 340 million yuan in first-half of 2007.

Chairman and executive director Yeung Kwok-keung said he was still confident about property sales. "We will have 16 more new projects to sell in the second half year, so we are certain that our company can reach the target," he said.

Yeung also added that the tightening policy on the mainland had weakened the property purchasing power. But its impact on the company was not significant, since the company did not develop property projects in first-tier cities.

Yeung, however, declined to comment on the company's bid to have the controlling stake in Television Broadcast Limited in Hong Kong.

(HK Edition 08/13/2008 page2)