Chinese Estates returns to profit, rewards investors

Chinese Estates Holdings shareholders will receive their first full-year dividend in five years after the company returned to the black with a net profit of $1.15 billion last year - its best result since 1997.

In a rare move for the property company, executive director Joseph Lau Luen-hung announced the results and vowed to improve the firm's transparency.

Improved rental income, strong contribution from property sales, a $108.4 million gain from a securities investment and a $438 million unrealised gain from its stock portfolio helped Chinese Estates mark a significant turnaround last year.

In 2002, the company suffered a net loss of $1.47 billion due to a $1.39 billion provision for the fall in the value of Hong Kong properties and slow sales.

Last year's strong result prompted Chinese Estates to propose a final dividend of 12 cents, bringing the total payout to 17 cents.

In 1997, it distributed a payout of 21 cents on the back of a $916 million net profit.