Date
29 March 2017
Agile plans to trim its debt burden and financing costs to shore up earnings, says CFO Sam Cheung. Photo: HKEJ
Agile plans to trim its debt burden and financing costs to shore up earnings, says CFO Sam Cheung. Photo: HKEJ

Agile may sell some non-core assets after poor first half

Agile Property Holdings (03383.HK), a real-estate developer based in Guangdong province, may sell some non-core assets to improve its financials following a slide in first-half profit. 

Among the potential asset disposals would be the firm’s interests in some hotels, the Hong Kong Economic Journal reported, citing the developer’s chief financial officer Sam Cheung.

Agile reported Wednesday that its net profit fell 52.8 percent in the first six months of 2015 compared to the same period last year due to lackluster sales.

The company aims to reduce its debt burden and financing costs this year. A domestic bond issue is being planned, with credit appraisal procedures now underway.

Chairman Chen Zhuolin said the mainland property market is going through a readjustment period that is likely to last for one to two years.

Agile will seek opportunities cautiously to diversify its business to areas such as property management, said Chen. 

The developer recently resumed work on an integrated amusement complex project at Hong Kong’s Lamma Island.

Chen said a project that will be supplemented with hotels and cruise terminals would be able to give a push to Hong Kong’s tourism industry.

[Chinese version中文版]

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