Wharf's (0004) underlying net profit, which excludes investment properties revaluation deficit and other unrealised accounting gains/losses, fell 16.6 percent year-on-year to HK$1.69 billion in the first half, mainly due to a decrease in dividend income, partly mitigated by an increase in interest income.
It posted a net profit of HK$48 million during the period, down 91.03 percent from HK$535 million a year ago.
The company declared a first interim dividend of 20 HK cents per share, as well as a special interim dividend of 20 HK cents per share to celebrate its 140th anniversary, bringing the total dividend amount for the first half to 40 HK cents, up 1 time from last year.
Revenue fell 5.73 percent to HK$5.34 billion, of which income from investment properties inched up 1.32 percent to HK$2.31 billion.
In yuan terms, revenue decreased by 3 percent as retail and office rentals remained soft in the mainland.
Development properties business saw revenue drop 8 percent to HK$679 million on lower sales recognition in the mainland, partly compensated by recognition in Hong Kong.
Logistics revenue was flat at HK$1.07 billion. Wharf said despite sustained competitive pressure in Hong Kong, it proactively secured new business scheduled to commence in the second half of the year.
Looking ahead, the company said the Central Government's tighter outbound direct investment regulations have added uncertainty to the broad residential market in Hong Kong, and the implications will need to be monitored.
In the mainland, rapid technological and artificial intelligence advancements contrast with ongoing challenges in the property sector, and sustained improvement in the latter remains important to restore broader market confidence, it added.
