Cheung Kong (Holdings) yesterday reported full-year earnings of HK$26.48 billion, a 35 per cent increase on 2009, beating the market's expectations.
Excluding property revaluation gains and profit contribution from associate Hutchison Whampoa, Cheung Kong's net earnings were up 26 per cent to HK$11.44 billion.
The second-largest developer in Hong Kong in terms of market capitalisation also announced an increase in dividend payment, with a final dividend of HK$2.45 per share, up 11.4 per cent year on year. It brings the full-year dividend to HK$2.95 per share, up 9.3 per cent from 2009.
Chairman Li Ka-shing predicted the government's measures to curb speculation in the property sector would slow the market. While the company was not against the government's determination to ensure sustainable and healthy development of the industry, Li said he was still upbeat on the long-term prospects of Hong Kong's real estate market.
'There is a real demand [for homes] in the market,' Li said at the company's results press conference.
Profit contribution from Cheung Kong's property sales from wholly owned or jointly owned developments for the year rose 9.89 per cent to HK$8.9 billion, while profits from hotels and serviced suites jumped 64.8 per cent to HK$852 million. Rental income grew slightly to HK$1.82 billion from HK$1.74 billion.
Deputy chairman Victor Li Tzar-kuoi said the company sold 7,700 flats last year. But not all sales showed up in the books.