Hong Kong tycoon Peter Woo Kwong-ching's Wharf (0004) swung to a net profit of HK$535 million for the six months that ended in June from a net loss of HK$2.64 billion a year earlier, helped by a reduction in interest expenses and taxation.
The company maintained its first interim dividend at 20 HK cents per share.
Underlying net profit rose 3 percent year-on-year to HK$2.04 billion, while revenue fell 19 percent from last year to HK$5.67 billion.
Income from investment properties slipped 4 percent to HK$2.28 billion amid softer retail and office rents.
Development property revenue tumbled 64 percent to HK$739 million. In Hong Kong, its last remaining house at 77/79 Peak Road was the sole sale recognized during the period. On the mainland, its remaining stock is slow in liquidation.
Hotels revenue increased by 7 percent to HK$312 million, mainly due to ramp-up for premature Park Hyatt and Maqo in Changsha.
The developer said that potential policy changes in the mainland may reshape the property market, but fundamental issues, including persistent oversupply as well as weak confidence and labor market continue to impede recovery, according to an exchange filing.
Meanwhile, interest rate movements and the pace of overall economic recovery will be key determinants of Hong Kong’s property market trajectory, the company said.
STAFF REPORTER
