Harbour Centre Development (0051) reported a widened net loss of HK$199 million in the first half year, dived 23.9 times year-on-year, mainly due to a higher impairment provision for development properties.
The group turned in an underlying net loss of HK$86 million from a profit of HK$74 million last year, driven by higher impairment provisions for development properties. However, inclusive of net deficit on revaluation of investment properties, the net loss was HK$199 million.
The company said it will not pay an interim dividend.
Its revenue rose 5 percent year-on-year to HK$654 billion, while its operating profit declined 40 percent to HK$125 million, dragged down by the development properties.
The hotel business generated a revenue of HK$426 million, edged up 1 percent from the previous year.
In Hong Kong, the hotel business saw a growth of 4 percent due to improved occupancy levels, while mainland hotels' revenue fell 17 percent due to aggressive pricing strategies among intensified competition.
Affected by lower retail rental income, its investment property revenue and operating profit down by 22 percent and 23 percent respectively, the company said.
Development properties revenue surged nearly 6 times to HK$58 million, but the thin margin resulted in an operating loss of HK$1 million.
Looking ahead, the company expects Hong Kong's consumer sentiment to remain fragile, and competition from regional shopping and travel destinations continues to divert spending abroad.
Also, cautious consumer spending patterns and persistent competition in mainland China would weigh on the hotel industry, the company added.
HELEN ZHONG
