Harbour Centre core profit dives by 77pc on projects business loss

Business | 3 Aug 2018 3:27 pm

Core profit at Harbour Centre Development Limited (0051) dived by 77 percent in the first half to HK$122 million, from HK$536 million in 2017.

The company said this was due to a "significant'' drop in development projects.

Developnent project revenue fell by 97 percent to HK$66 million, from HK$2.16 billion in 2017. This resulted in an operating loss of HK$46 million from a profit of HK$1.13 billion in 2017.

Including contributions from joint ventures and associates, the development projects business reported a core loss of HK$9 million, from a profit HK$330 million in 2017.

Group attributable profit tumbled by 36 percent to HK$358 million, from HK$556 million in 2017.

The basic earnings per share were 51 HK cents versus 78 HK cents in the year before period.

Stockholders were rewarded an interim dividend of HKD$0.07, which was a 50 percent decrease from the 2017 payout of HK$0.14 per share.

Group consolidated revenue also plunged by 72 percent to HK$740 million, from HK$2.67 billion in 2017, the company reported.

Operating profit sank by 89 percent to HK$152 million, from HK$1.39 billion in 2017.

The China portfolio booked "a small loss,'' the company said, with limited recognition of revenue from the depleted land bank. Contracted sales amounted to 81 million yuan, from 700 million yuan in 2017.

There was a net cash outflow due to project costs at the 25-story The Murray in Central, Hong Kong as well as at the Suzhou international Finance Square.

Revenue of The Marco Polo Hong Kong Hotel grew by 19 percent and operating profit cmilbed by 51 percent.

The group said it is looking towards The Murray for future long-term growth and profit.

But the hotel segment segment reported an operating loss of HK$37 million from a profit of HK$59 million in 2017.

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