China Everbright posted a 71.26 per cent plunge in net profit to HK$371.43 million for last year, mainly due to reduced profit from sales of China Mobile shares.
Profits were also hit by a decline in earnings at associates China Everbright Bank and Everbright Securities, according to chief financial officer Louis Lau Chung-man.
The results announcement came almost two weeks after the company issued a profit warning, saying that due to market conditions and changes in mainland banking policies profits of its 49 per cent-owned securities arm and 21.3 per cent owned-banking unit for last year would be below those of 2000.
Earnings from the two associates fell almost 90 per cent last year, Mr Lau said yesterday.
In its results announcement, the company said associated income fell to HK$15.62 million last year, from HK$538.86 million the previous year.
Mr Lau said the slowdown of China's stock markets hit the securities arm's bottom line, while the changes in banking policies in the second half of last year dealt a blow to China Everbright Bank.
He did not elaborate on the policy changes but analysts speculated that higher provisions at China Everbright Bank were made at the request of the People's Bank of China, as part of efforts by the Ministry of Finance to speed up reduction of non-performing loans.