CK Asset (1113) recorded a 5 percent rise in underlying profit to HK$6.64 billion for the six months ended June as the local property market sentiment continued to improve amid low mortgage rates.
The developer also raised the interim dividend by 5.1 percent to 41 HK cents.
Net profit, which included gains from the disposal of UK joint ventures and fair value changes of investment properties, as well as a HK$6 billion impairment of associate Hui Xian REIT (87001), increased by 37.8 percent to HK$8.68 billion.
The impairment was made mainly because the market value of the REIT units was well below the firm's carrying amount, CKA said.
Revenue for the period jumped by 59 percent to HK$40.3 billion, as property sales nearly tripled to HK$21.6 billion.
A total of HK$3.2 billion in contracted sales is expected to be recognized this year, and HK$2.79 billion is projected to be booked from 2027.
It had a development land bank of 63 million square meters as of the end of June, most of which was located in the mainland.
CKA said it will uphold a cautiously proactive approach to identifying potential investments and will also continue to earnestly assess opportunities in Hong Kong and the mainland.
Asked about the potential impact on the local property market following China’s recent crackdown on offshore income, Gerald Ma Lai-chee, general manager of the corporate business development department, said the rules and regulations have always been in place and that the recent announcements provided clear guidance on compliance.
