SIME Darby Hong Kong has disappointed the market with a bigger-than-expected fall in full-year net profit.
The fall came on the back of a slowdown in the economy, particularly in the retail sector.
Profit attributable to shareholders for the year to June 30 tumbled 10.3 per cent to $504.8 million from $562.9 million in the previous year. This contrasted with a market consensus of a six per cent drop in profit to $531 million in the July edition of the Estimate Directory.
Company secretary Tan Wan-hong said: 'The past financial year witnessed a slowdown in the Hong Kong economy after years of uninterrupted growth.
'The local dollar's linkage to the US dollar also had an adverse effect on margins since the majority of the motor vehicles the group sells are sourced from Japan and Germany.' The retail sector was depressed with total market registrations falling 23 per cent year-on-year.
Only the BMW franchise of Sime Darby Motor Group managed to increase market share, Mr Tan said.
The performance of China Engineers was satisfactory, he said.
