Property provisions push G-Prop Holdings into $1.23b decline
Property concern G-Prop Holdings, formerly Tung Fong Hung Properties (Holdings), collapsed into a $1.23 billion net loss last year due to large provisions arising from property investments.
Its former substantial shareholder and Chinese medicine retailer Tung Fong Hung (Holdings) also suffered a net loss, of $772.93 million, in the eight months to March 31 compared with a $134.88 million net profit during the corresponding period last year.
Tung Fong Hung (Holdings) sold its entire 27.8 per cent G-Prop Holdings interest in March to a family trust called Fullway Champion, which resulted in the firm recording a $487.89 million exceptional loss.
The eight-month accounts represented a change of financial year end for Tung Fong Hung (Holdings) from March to July.
G-Prop and Tung Fong Hung (Holdings) have become the latest companies to reveal heavy damage from the property sector's sharp correction, with G-Prop's net loss in the year ended March 31 comparing with a $162.88 million net profit in the previous year.
G-Prop Holdings suffered $563.92 million in exceptional items from continued operations, mostly arising from deficit of revaluation of investment properties and the forfeiture of deposits made on acquisition of property interests.
Other provisions were made for properties held for resale and for diminution in value of properties held under development.
The exceptional items caused the group to report a $720.58 million operating loss against the previous $27.06 million operating profit.
The poor performance of associates added further to G-Prop's woes, with their share of losses amounting to $473.22 million compared with a $201.25 million profit share previously.
Turnover fell slightly to $280.06 million from $282.92 million.