Chinese Developer Blames Trump, Touts Mao in Earnings Report
(Bloomberg) -- World leaders rarely make it into company earnings reports, but China Properties Group Ltd. has managed to pack five U.S. and Chinese top names into its own.
After presenting a 72 percent decline in first-half revenue, the management led by Chairman George Wang criticized U.S. President Donald Trump and praised several former Chinese leaders in an interim report published Wednesday night.
“Fortunately, Trump does not have the same wisdom as Mao Zedong in making alliance with one while fighting another,” said the company in the management discussion and analysis section of the filing. The developer derives all its revenue from China. “He wants to fight the world.”
The U.S. “printed money like crazy” 10 years ago and is now seeking to “undermine the asset markets of other countries” and push “the trade war to the limit,” China Properties said. The company quoted dicta of Deng Xiaoping and Jiang Zemin such as “keep a low profile to make a big fortune” and cited a line from Chinese President Xi Jinping against property speculation.
China Properties, which sells flats in Shanghai and Chongqing, swung to an operating loss of 36.5 million yuan ($5.3 million) in the first half of 2018 from an operating income of 113.8 million yuan a year ago, according to its report. The developer posted a net income of 277.8 million yuan, thanks to a fair value gain of 416.5 million yuan from investment properties.
The company said its policies will remain unchanged despite this “looming war” on trades. Its Hong Kong stock has lost 25 percent this year, compared with a 5.9 percent decline in the benchmark Hang Seng Index.
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