Guangzhou Investment's net profit plunged 68.59 per cent to $100.28 million last year after taking a $220.57 million exceptional loss for the fall in value of property.
The Hong Kong-listed arm of the Guangzhou municipal government said its mainland business had been steady last year.
It would continue to make selective investments in toll-road projects and mass-market residential properties in Guangzhou.
It would also expand production of ready mix concrete and cement delivery operations, and move into producing high-grade newsprint.
The red chip posted a 4.93 per cent increase in turnover to $2.51 billion.
The exceptional item last year represented a provision on its investment property and land bank in Hong Kong and Macau while an exceptional gain of $101.77 million was booked from the spin-off of GZI Transport in the previous year.