K Wah net shrinks 70pc amid fewer deliveries

K Wah International's (0173) interim net profit shrank 70 percent to HK$776 million as revenues plunged on fewer deliveries to buyers.

An interim dividend of 7 HK cents was declared.

Earnings per share were 24.83 HK cents and the underlying profit - before fair value change of investment properties - was HK$488 million.

Revenue for the period was HK$2.51 billion, down by around 70 percent from HK$8.4 billion, and the contracted sales were HK$9.6 billion.

The decrease in revenue was mainly due to fewer pre-sold properties delivered to buyers in the period compared to last year.

The developer said its unrecognized contracted sales were approximately HK$17.4 billion and expected to be accounted for in the second half of 2021 and 2022.

Chairman Lui Che-woo said major economies around the world rebounded following the global roll-out of vaccination campaigns and funds continued to be injected into the market as "zero or a negative interest rate policy" remained.

Together with the liquidity in the Hong Kong banking market, the underlying demand ensured a resilient residential property market, with an increment in both prices and transactions in the period, Lui said.

Though social distancing measures are still in place, economic activities in Hong Kong are gradually recovering and the unemployment rate has improved, K Wah said, adding that it expects the property market to remain stable.