Luks Group, which is in property development, cement production and television manufacturing, says it will book a profit of HK$70 million from its television manufacturing associate, TCL Electronics (Hong Kong), this year. Chairman Luk King-tin said the 38 per cent owned associate, started as a joint venture with TCL Electronic Corp of China in July last year, contributed HK$23 million to group profit in five months of operation last year. TCL (HK), which plans to get listed in Hong Kong next year, expects its sales of television sets to reach HK$3 billion this year. Director John Tse On-kin said the company would be able to produce net profit of HK$200 million this year. Meanwhile, Luks' investment projects in Vietnam will make profits of at least US$2 million this year. The company operates a cement plant in Hue and a commercial business centre in Ho Chi Minh City. Investment in the two projects is US$105 million. Mr Luk said the cement plant, with an annual production capacity of 500,000 tonnes, was undergoing tests. Full production is expected in the third quarter. 'The cement plant makes profit when its production achieves up to 100,000 tons,' he said. He said they aimed to make a profit of US$20 a tonne on the cement operation. The retail price of cement in Vietnam is US$75 a tonne, while the production cost is about $46. The group's commercial and business operation - Saigon Trade Centre - will be completed by next month. The US$48 million building, joint venture with affiliates of the Ministry of National Defence, leased 10 per cent of the 54,027 square metre office space to foreign investors. Luks financial controller Martin Fan Chiu-tat said the rent was US$15 a square metre a month, giving a yield of 20 per cent. The rent rate is half of the amount that the company had expected. The company aims to lease 35 per cent of the offices this year, rising to 80 per cent next year. In China, the company also has a 1.28 million sq metre property development project in Wuhan, Hubei province, which is being developed over 10 years. The first two phases are almost completed. The company agreed to sell 49,000 sq metres of office space and 175 car-parking spaces to China Ping An Trust Co for 300 million yuan. Beijing Wangfujing Department Stores, in which recently listed Beijing Enterprises Holdings has a strategic holding, has agreed to buy 35,000 sq metres for 360 million yuan.