K Wah sees net profit drop 58pc to $335m as mainland property market reels

K Wah International (00173) reported a net profit of HK$335 million for 2024, down 58.23 percent year-on-year due to the continued sluggishness of the mainland property market and weak buyer confidence.

The company's revenue broke HK$7.19 billion, up 17.77 percent from a year earlier, primarily driven by property sales from Sierra in Nanjing, Cosmo in Guangzhou, and K Summit and Solaria in Hong Kong, as well as rental income from Shanghai K Wah Centre.

Its underlying profit was HK$361 million in 2024, down 53 percent from 2023.

Attributable contracted sales yet to be recognized amounted to HK$11.7 billion by the end of 2024, which is expected to be accounted for from 2025 onward.

The board has proposed a final dividend of 5 HK cents per share, bringing the total dividend for the year to 9 HK cents. Its stock fell more than 3 percent on Thursday.

K Wah said it will continue to assess any opportunities where appropriate with its financial resources, and replenish its land bank in Hong Kong as well as the Pearl River and Yangtze River Deltas on a disciplined basis and in a cautious manner, according to an exchange filing.

STAFF REPORTER