Staff reporter
Sino Land's (0083) annual net profit fell 25 percent to HK$4.4 billion for the fiscal year ending June amid a weak property market, but it maintained a final dividend of 43 HK cents.
The underlying profit, after excluding the investment property revaluation loss of HK$580 million, fell 15 percent to HK$5.17 billion.
Total revenue from property sales contracted by 25.5 percent to HK$8.89 billion with Grand Victoria phase 2 and phase 3 in Cheung Sha Wan and One Soho in Mong Kok major contributors.
Sino Land also launched two new projects during the year, including La Montagne in Wong Chuk Hang and Villa Garda III in Tseung Kwan O, with 6.8 percent and 34.9 percent of total units sold respectively.
In the current financial year, Sino Land expects to unveil at least two more projects, One Central Place in Central and Grand Mayfair III in Yuen Long. But the timing of new launches will depend on market sentiment.
For commercial businesses, the gross rental revenue inched up by 1.3 percent to HK$3.55 billion, thanks to the recovery in retail sales and the improvement in occupancy for residential and industrial sectors.
However, the overall occupancy edged down by 0.4 percentage points to 90.8 percent.
Chairman Robert Ng Chee-siong said the company would stay "alert and flexible" amid the changing macro-economic environment and continue prudent financial management to tackle challenges and seize on opportunities that arise.
Sino Land held net cash of over HK$45.5 billion as of June, up by 8.6 percent from one year ago.
Its parent Tsim Sha Tsui Properties (0247) recorded a net profit of HK$2.5 billion, down by 23.7 percent and declared a final dividend of 43 HK cents.
Sino Hotels (1221) swung to a net profit of HK$64.3 million from a net loss of HK$19.5 million and resumed the distribution of a final dividend of 1.5 HK cents.
Meanwhile, local realtor Midland Holdings (1200) saw its first-half net profit surge over 345 percent year-on-year to HK$174 million but declared no interim dividend.
Midland chairman Freddie Wong Kin-yip warned that property prices could stay under pressure before any interest rate cuts as the longer-than-expected high interest rate period has impacted the real estate market.
