PCPD sees brighter outlook after interim profit tumbles 99pc
Pacific Century Premium Developments (PCPD), PCCW's property arm, is poised to book more profit from property sales in the second half after securing occupation permits from the government for 700 units that have already been sold.
PCPD posted a 99.2 per cent plunge in net profit to HK$5 million for the six months to June from HK$606 million a year ago.
Turnover for the first half fell 70.6 per cent to HK$618 million from HK$2.1 billion a year earlier.
Earnings per share were 20 HK cents. The company did not declare an interim dividend.
It said the sharp profit fall was mainly because the flats sold last year were still waiting for government certificates of compliance, or occupation permits.
Property companies can only book profit and revenue from flats they have sold after they have been issued with the permits.
Deputy chairman Alex Arena said the group sold 700 units at the Bel-Air No8 project for HK$12 billion and the pre-sale of One Pacific Heights was well received in the market, with 95 per cent of the pre-sale units sold. One Pacific Heights is the firm's first project from the redevelopment of PCCW's telephone exchange tower.
The project, in Central, is targeted for completion next year. The company sold 141 residential units in advance, generating HK$1.16 billion.
PCPD booked a net surplus from the Cyberport project of HK$197 million in the period, while the government's share accounted for HK$358 million.
A project in Beijing's Chaoyang district, with 210 luxury apartments, is on schedule for completion in 2010.
PCPD also has several long-term projects, including resort complexes in Hokkaido in Japan and Phang-Nga in southern Thailand.
Shares in PCPD yesterday fell 0.72 per cent to HK$2.77.
