Losses fall at three arms of Century City
Three companies of the financially troubled Century City Group saw a substantial drop in their net losses for the six months to June, due to smaller provisions for investment properties and convertible bonds.
The interim results came as the group's chairman Lo Yuk-sui unveiled the updated financial position and asset disposal progress of the three companies.
On the subject of the ultimate parent Century City's potential sale of 30 per cent of existing shares in Paliburg, Mr Lo said that progress on the part of the other party had recently slowed down.
But Century City was already in the process of discussing the sale of Paliburg shares with other potential investors, he said.
He said Century City had discussed the extension of the informal standstill arrangement beyond September 30 with lenders, and was hopeful of their support.
During the period, Century City reported a loss of $155.2 million for the six months to June against $601.6 million for the previous first half.
Exceptional losses fell substantially to $22.1 million against $600 million for the first six months last year.
But the company posted an operating loss of $192.5 million this period against a profit of $72.2 million for the same period last year.
Paliburg Holdings reported an interim loss of $114.8 million against a loss of $609.7 million for the previous first half.
The company posted an operating loss of $108.6 million. This compares with a profit of $100.5 million last year.
Exceptional losses were almost eliminated from the previous period's $460 million to this half year's $18.8 million.
Hotel arm Regal Hotels International, which recently agreed to sell its North America hotels interests to Millennium & Copthorne, recorded an interim loss of $119.7 million.
This compared with a loss of $129.2 million in the first half of last year.
Regal's exceptional loss was cut from $140 million last year to $14.9 million.
Operating loss was $99.9 million, compared with a profit of $25.3 million last year.
Loss per share for Century City, Paliburg and Regal was 5.1 cents, 4.9 cents and 3.1 cents respectively.
Interim dividends will not be paid at any of the three companies.
Mr Lo said that by selling investment properties in Tsuen wan, Tai Po and Yuen Long, Paliburg had realised sale proceeds totalling $300 million.
Profit from selling interests in an Ap Lei Chau development site would be taken into account in the second half, Mr Lo said.
The Park Royale in Yuen Long had been completed last month.
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