Developer's first hotel project will only begin to contribute revenue by 2008
Renren Holdings, the telecommunications operator-turned developer that is to change its name to Skyfame Realty (Holdings), says its first luxury hotel and serviced-apartment project will not begin contributing revenue until 2008.
Chairman Yu Pan, a veteran developer in Guangzhou who took control of Renren in 2004, said some of the company's operations had been terminated to focus on the one billion yuan development in Guangzhou.
But the absence of property sales, with an inherited interim loss of $7.75 million racked up by the company's former management, has raised market concerns over its income for this year and next.
Group chief financial controller Julia Cheung, however, was optimistic that its property management division would generate 'tens of millions of dollars' in annual income.
'We will broaden our recurrent income to make smooth earnings,' she said.
Executive director Derrick Lau Yat-tung said the company would actively look for new development opportunities.