Chinese Estates net dips 7pc to $785m

Business | Winnie Lee 14 Aug 2020

Chinese Estates (0127) said net profit in its first half dropped 7 percent year-on-year to HK$785.98 million, while core profit rose 3.6 percent to HK$1.24 billion.

Earnings per share were 41.2 HK cents, with the company declaring an interim dividend of 1 HK cent.

It explained that profits predominantly fell due to investments and treasury products at fair value through loss, with a loss of HK$270 million as compared with a profit of HK$1.20 billion recorded in the first half of 2019.

Excluding the net loss on the major non-cash items of HK$461.2 million, the group recorded a core profit of HK$1.24 billion.

First-half revenue fell 17.5 percent year-on-year to HK$222.7 million, due to a decrease in gross rental income.

Rental income dropped 19 percent to nearly HK$212 million. Retail rental income fell 6 percent to HK$26 million and non-retail rental income dived 22 percent to HK$176 million. Rental income decreased due to the surrender of the lease by the tenant of a UK investment property.

Net dividend income of HK$1.35 billion was recognized from the China Evergrande (3333) shares.

Looking ahead, global economic growth is unlikely to experience a swift rebound, the group said. As a result, the group will seek investment opportunities amid the low-interest landscape.

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