Underlying profit at China arm drops
New World China saw underlying interim profit drop 5.7 per cent to HK$546.1 million because of increased operating losses from its hotel operation. However, net profit rose 151 per cent to HK$940.3 million from HK$374.2 million a year earlier including a property revaluation gain of HK$16.57 million.
Profit from property sales at six completed projects rose 5 per cent to HK$393.2 million despite a 65 per cent increase in completed floor area. The projects were lower-priced residential flats in second-tier mainland cities. Gross profit margin dropped 15 percentage points to 23 per cent.
The mild growth in profit generated from property sales was wiped out by the loss of HK$56.76 million from the hotel operation as a result from high depreciation charges.