Shimao's loss widens to 22.6b yuan

Shimao (0813) saw its interim loss widen by 88 percent to 22.67 billion yuan from a year ago, due to a drop in gross profit and an increase in other losses.

The Chinese developer's gross margin slumped to 0.1 percent from 10.3 percent during the period as continued downturn in the real estate sector called for increased provision for impairment losses on properties. Average costs including land and construction also went up.

The factors contributed to the gross profit shrinking by 99.5 percent to just 15 million yuan, compared to 3.12 billion yuan in the first half of 2023.

The company declared no interim dividend, with a loss per share of 6 yuan.

Meanwhile, revenue also recorded a decline of 4 percent year-on-year to 2.92 billion yuan, with the primary business - sales of properties accounting for approximately 80 percent of the total revenue - lowering by 5 percent to 23.17 billion yuan.

Hui Wing Mau, 74, will retire as Shimao's chairman, to be succeeded by his son Hui Sai Tan with effect from September 1, according to a filing by the company yesterday.

Another mainland real estate developer Poly Property (0119) announced its first-half net profit dropped 41.6 percent to 373 million yuan from a year ago, and no dividend was declared.

Nancy Li