New accounting standards covering gains on investment properties failed to lift Shun Tak Holdings' interim profit from the doldrums.
Despite a gain of $107 million booked from the revaluation of its investment properties, the group reported a 2.3 per cent drop in profit to $210.7 million for the six months to June.
The drop was mainly due to a decline in contributions from its Hong Kong property development business, with operating profit from the division down 72.45 per cent year on year to $92 million, largely due to a lack of new projects.
'This decrease in operating profit is attributable to the completion of the sales of residential units at Liberte in 2004, and the reduced revenue from sales of the remaining units at the Belcher's,' the company said.
Turnover dived 39.94 per cent to $1.34 billion, while basic earning per share amounted to 10.1 cents against 10.9 cents previously.
The group expects to wrap up its 12-year quest to acquire Chatham Garden in Kowloon by year-end.