Wharf (0004) recorded a net loss of HK$1.74 billion in the first half, compared to a net profit of HK$2.45 billion a year before, due to severe disruptions caused by Covid-19.
Excluding investment properties revaluation deficit, underlying net loss was HK$1.13 billion in the first six months, compared to an underlying net profit of HK$2.24 billion a year before.
First-half revenue decreased by 31 percent year-on-year to HK$5.55 billion, with mainland development properties reporting about 60 percent lower revenue recognition. Basic loss per share was HK$0.57. Wharf declared a first interim dividend of HK$0.20 per share.
Hotel revenue decreased by 54 percent year-on-year to HK$123 million with low occupancy and depressed room rates, mainly caused by the imposed travel restrictions and cancellation of bookings after the virus outbreak.
Chairman and managing director Stephen Ng Tin-hoi said Wharf has suspended land acquisition in the mainland where the rate of return is lower than Hong Kong, and will keep tab on development opportunities in Hong Kong.
The revenues of Niccolo Changsha and Niccolo Chengdu, the two luxury hotels that Wharf manages, both hit new highs in July since their openings, Ng said.
Ng said the property market in Hong Kong has uncertainties, but the group's financial position remains sound.
Ng said the privatization of Wheelock will not affect its cooperation with Wharf.
