NEW World Development's profits have dived 20.6 per cent to $3.41 billion, making it the first of the top-flight developers to post a drop in annual earnings since the Government introduced real estate market cooling measures. Despite depressed sales, all other Hang Seng Index constituent property development giants increased profits in their latest corporate results. Sun Hung Kai Properties increased its annual profits by 17.5 per cent to $10.36 billion for the year to June 30, Hang Lung Development's rose 6.9 per cent to $2.16 billion, while Henderson Land Development's climbed 16 per cent to $7.03 billion. Li Ka-shing's Cheung Kong (Holdings), which is only at interim stage, recently posted a hefty 33 per cent jump in half-year earnings to $5.94 billion, taking everyone by surprise. New World failed to disclose how much profits it booked from particular developments in its results statement yesterday, leaving analysts and shareholders guessing. Disappointing apartment sales at New World's Crestmont Villa development in Discovery Bay and Blessings Garden project in Mid-Levels were being largely blamed for the fall. Analysts originally had expected New World to have completed and marketed its developments on both sites 4A and 4C of Discovery Bay during the 1994-95 financial year. This would have reaped a net profit of about $650 million. Instead, just its low-rise Crestmont Villa development on site 4A was completed and put up for sale, and even then analysts claimed just 15 per cent of flats were sold. HG Asia property analyst Franklin Lam said its profit on Crestmont Villa sales would have been so modest he doubted if New World had bothered booking anything at all, preferring instead to wait for the coming financial year. While other developers were slashing their asking prices to lure buyers during the property market slump, New World tried asking a bullish $4,700 per square foot for its Crestmont Villa flats. Analysts believed about $495 million may have been booked from sales at Blessings Garden, although the bulk of this - about $382 million - is believed to have come from the sale of a 85,000 square foot stake in the development to Lai Sun Development. Sales of individual units to the public were thought to have been, at best, modest. The other two new development properties completed and marketed during the same period were a 43,707 square foot commercial block at 46 Lyndhurst Terrace in Central, and Li Chit Garden, a 102,382 square foot joint venture with the Land Development Corp in Wan Chai. New World managing director Henry Cheng Kar-shun said: 'Current property prices have stabilised at a more affordable level, inducing some stimulus to end-user demand in pre-completion sale of selected residential developments.' He added: 'Hong Kong's property market is yet to fully recover.' Recurrent income from its sizeable rental property portfolio grew to $1.56 billion, up from about $1.39 billion last year. New World's five Hong Kong hotels, including the Grand Hyatt and the Regent, all enjoyed high occupancy rates and above average room tariffs. The group's many hotels in the United States and South East Asia mostly showed improvements, although its hotel business in China was said to have been affected by the mainland credit squeeze. Little was believed to have been booked from the group's infrastructure and property interests in mainland China this year. Turnover for the group as a whole was down six per cent to $17.45 billion. Despite a 20 per cent slide in basic earnings per share to 205 cents, New World's directors have proposed paying the same final dividend as last year of 78 cents a share. This brings the total payout to 106 cents a share, as in 1994.