Hunan AVA to issue 200 mln shares by private placement

Nov. 6, 2009 (China Knowledge) - Hunan AVA Holdings Co Ltd<000918>, a real estate developer based in Hunan Province, on Wednesday announced that it plans to issue up to 200 million A shares for RMB 3.6 billion at most in private placement, sources reported.

The proceeds from the issuance will be used to fund development in eight property projects, one in Shanghai, one in Chongqing, one in Shandong Province, one in Henan Province and four in Zhejiang Province.

In the third quarter of this year, the Shenzhen-listed firm reaped RMB 1.32 billion in total operating revenue, more than twice its total operating revenue in the same quarter of last year. Net profit amounted to RMB 165.51 million and earnings per share were RMB 0.11.

In the period from January to September, the enterprise's net profit swelled 12.83% year on year, hitting RMB 153.87 million, but its total operating revenue declined 36.06% year on year, reaching RMB 2.2 billion.

Hunan AVA also predicted that its net profit will grow 77.67% from RMB 590.98 million last year to RMB 1.05 billion this year. Earnings per share are expected to increase 46% from RMB 0.5 in 2008 to RMB 0.73 in 2009, sources reported.