Hysan Development yesterday unveiled a worse than ex pected 80.1 per cent plunge in interim earnings to $171.97 million, hit by $450 million in provisions for the fall in value of securities investments.
The property-investment company, whose corporate credit rating was downgraded by Standard & Poor's this month, said the disappointing year-on-year interim result reflected difficult market conditions and a higher interest burden during the period.
A sharp downturn in the property and stock markets, the economic downturn and higher interest rates have seriously hit earnings and liquidity at all property companies in Hong Kong.
Hysan said interest rates were expected to remain high, so measures were being taken to cut debt by selling non-core investment properties and marketable securities.
The company also announced a scrip dividend-alternative plan aimed at enhancing cash flow.
The interim dividend for the first six months to June was proposed at 10 cents a share, against 44 cents a year ago.