Hit by the slowdown in the hotel industry and an increase in losses from its telecommunication arm, New World Development has seen modest growth in interim profit to $2.2 billion from $2.19 billion for the six months to December.
Managing director Henry Cheng Kar-shun said he was satisfied with the group's achievement taking into account the slowing economy.
Dampened by the region's financial crisis, the economic environment in Hong Kong for the period was significantly worse than in 1996, Mr Cheng said.
He said the group's profitability in the second half would depend on the macro economy and the property market, both of which he forecast would stabilise.
He also hinted the group would not spin off its property management firm New World Services for a separate listing in the second half.
The negative impact of the financial turmoil was reflected in the group's hotel business, which posted a 53.57 per cent fall in operating income to $305.7 million from $658.5 million for the corresponding period last year.
The financial crisis also increased the group's net interest expenses 56.29 per cent to $441.7 million.