K Wah International (0173) saw its first-half underlying profit, which reflects regular business earnings excluding unrealized gains or losses from property revaluation, edge down 2 percent to HK$97 million.
The company maintained an interim dividend at 2 HK cents per share.
Revenue surged 370 percent to HK$4.9 billion, mainly derived from the property sales of Avenir in Shanghai, and the rental income from Shanghai K Wah Centre.
However, net profit for the period fell by nearly 30.7 percent to HK$79 million as slumping joint ventures earnings offset its higher revenue.
Contracted sales in the six months were HK$6.1 billion, and it had HK$5.6 billion in contracted sales not yet recognized as of the end of June.
Gearing ratio decreased to 9 percent from last year’s 17 percent, with total borrowings falling to HK$11.2 billion.
The local developer said, for the rest of 2026, the Hong Kong residential market is set for a period of steady consolidation, with the company retaining its forecast of modest full-year price growth. While, a broad recovery is unlikely for mainland China’s property market in the second half year, with an expanding performance gap between tier-one and lower-tier cities.
The company will prudently pursue suitable landbank additions with financial resources in Hong Kong, the Pearl River Delta and Yangtze River Delta, it added.
Frank Feng
