Shanghai Real Estate said its underlying profit doubled to HK$400 million last year on strong property sales.
Net profit fell 16.2 per cent to HK$252.37 million from HK$301.17 million on provision for additional land appreciation tax of HK$252 million and fair value of fixed cross currency swap contracts of HK$211 million. Turnover doubled to HK$2.62 billion from HK$1.31 billion.
Underlying profit rose to HK$400 million from HK$200 million a year earlier, the company said.
The shares dropped 10.55 per cent to close at HK$1.95 after the results announcement.
Profit from property sales jumped 109 per cent to HK$818 million from HK$391 million, with about 55 per cent of property sales revenue coming from the Rich-Gate Oasis Garden project in Shanghai. Nineteen units sold for HK$390 million last year.
Chief financial officer Stan Yu Wai-leung said property sales may reach HK$3 billion this year. The developer generated HK$2 billion from the pre-sale of residential units last year which will be booked this year on completion of the projects.