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MPF contribution brings Midland Realty net down

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Midland Realty posted a net profit of HK$40.96 million for the year to December 31, down 23.1 per cent from the previous year.

Turnover rose 17 per cent to HK$916 million. It brokered 37,863 rental and sales transactions, up 26 per cent from the previous corresponding period.

Earnings per share were 6.9 HK cents, against nine HK cents a year earlier. A dividend of 1.8 HK cents was declared, bringing the full-year dividend to 2.3 HK cents.

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The company said a HK$17 million Mandatory Provident Fund contribution had hit earnings. Operating profit dropped 24 per cent to HK$62.46 million from HK$82.36 million.

Chairman Wong Kin-yip estimated many property agents would quit this year due to keen competition. At present, there are about 13,000 agents in the market.

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'About 20 per cent of the existing agents in the market will be eliminated this year because of the weak economic sentiment and the drop in transactions,' Mr Wong said.

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