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China Property

New World China Land sees core profit rise 23.5 per cent after sale of hotel management business

Company reports exchange loss of HK$1.25 billion due to devaluation of yuan

PUBLISHED : Tuesday, 23 February, 2016, 3:26pm
UPDATED : Tuesday, 23 February, 2016, 3:26pm

New World China Land said its core profit rose 23.5 per cent for the six months to December 31, thanks to a disposal gain on a hotel management business.

The Hong Kong-listed property unit of New World Development said the core profit, excluding revaluations, exchange differences, amortisation and impairment of intangible assets, amounted to HK$1.38 billion, compared with HK$1.12 billion in the second half of 2014. It gained about HK$769 million from the sale of the hotel management business, the company said in filings to the Hong Kong stock exchange on Tuesday.

New World China Land sold its entire interest in New World Hotel Management, which is engaged in the provision of worldwide hotel management services, to Chow Tai Fook Enterprises, the substantial shareholder of New World Development, for HK$2.75 billion in July.

The company said its six-month net profit attributable to shareholders fell 64.2 per cent to HK$542.21 million, from HK$1.52 billion in the corresponding period a year earlier, after an exchange loss of HK$1.25 billion arising from devaluation of the yuan by 4.4 per cent since June.

Turnover fell 13.44 per cent to HK$7.3 billion and attributable operating profit from property sales fell 38.2 per cent to HK$801.91 million.

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