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SCMP Reporter

Shenzhen-based property and transport group Shum Yip Investment's net profit for the first half fell 23.73 per cent compared with the same period last year, due to sluggish property sales and rental income.

 The company reported its profit for the six months to June 30 dropped to HK$107.59 million from HK$141.06 million in the previous corresponding period.

 Although its earnings per share declined 23.75 per cent to 10.37 HK cents, Shum Yip kept its interim dividend payout unchanged at 2.3 HK cents.

 Shum Yip managing director Wen Gujian attributed the company's sharp fall in profit to the decline in earnings from the property market.

 The company said net profit derived from property sales and rental portfolios for the first half of the year slumped by 50 per cent to HK$42.5 million.

 Mr Wen said the total gross floor area sold by the company during the period dropped by 25 per cent.

 However, Shum Yip expects property activities to improve in the second half of the year as the occupancy rate of its investment properties remains steady at a similar level to the previous year.

 Shum Yip's earnings were partly buffered by an exceptional gain of HK$29.7 million generated from the repurchasing and cancellation of US$15.06 million of its convertible bonds due in 2002.

 In the previous period, Shum Yip made an exceptional gain of HK$54.53 million from repurchasing its convertible bonds.

 The company's two other main businesses, transportation services and infrastructure investment, remained steady during the period.

 Net profit contributed by transportation services was about HK$20.22 million, while net profit from infrastructure investment was HK$41.88 million, about the same as that in the previous period.

 As at June 30, Shum Yip's net gearing ratio was 24 per cent, with cash and bank balances amounting to HK$1.1 billion.

 Its total borrowings were HK$1.61 billion, of which HK$1.14 billion were long-term borrowings.

PROPERTY 



Sluggish market hurts Shum Yip