New World Development Co. (00017.HK) saw its net profit slide 43.6 percent from a year earlier in the six months ended December due to a weaker renminbi and property revaluation losses, the Hong Kong Economic Journal reported Wednesday.
A 4.4 percent slide in the renminbi has offset HK$400 million sales revenue during the company’s fiscal first-half, chairman Henry Cheng Kar-shun was quoted as saying.
Recurring profit, meanwhile, slid 25.6 percent to HK$3.28 billion over the period. However, the profit was down only 0.3 percent, at HK$4.35 billion, excluding the impact of currency movements.
Cheng said he believes that Hong Kong will not see any substantial decline in property prices, given the rising construction costs and high land prices.
The property market will stabilize after possibly witnessing another 10 percent correction in prices, the tycoon said.
New World will not sell its properties at a steep discount although the company will seek to boost its revenues, Cheng said.
In other comments, he said the group will consolidate its land bank through different means.
New World’s China arm recorded a 64.2 percent decline in its net profit for six months to December, at HK$542 million, following a foreign exchange loss of HK$1.25 billion.
[Chinese version 中文版]
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