Gemdale adjusted its residential product offering to appeal more to first-time homebuyers, based on its assessment of customer needs and fluctuations in demand because of national policy.
Results during the first half of 2014 reflected a decline in demand and excess inventory, resulting in part from tight credit. China’s urbanization continues to drive long-term opportunity, however. And the stock performed well.
Established as a company in 1988 and in the real estate business since 1993, Gemdale develops residential housing throughout much of China and is present in 25 major cities.
It also operates a real estate financing company called Wins Investment. Gemdale was listed on the Shanghai Stock Exchange in 2001.
Net income declined 50 percent to $26 million in the first half of 2014, on a 4 percent revenue rise to $1.4 billion. For the full year 2013, net income was flat at $587 million on a 10 percent revenue increase to $5.2 billion.