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Kandy Wong

Tianjin Development Holdings  yesterday posted net profit  of HK$236.9 million  for the first half of the year,  thanks mainly  to the contribution  from its utility operations.

On a net  basis, profit  fell 19 per cent year  on year  only because last year's HK$293.1 million figure included a one-time HK$207 million gain from  port operations.

Excluding that exceptional item from attributable profit, earnings rose 32.4 per cent based on last year's HK$179 million. Revenue surged 40 per cent  to HK$1.6 billion.

Utility operations, which include  Tianjin Development's electricity and water businesses, accounted for 60 per cent of   overall revenue  for the period, increasing nine percentage points from last year.

The segment booked HK$76 million in underlying profit,  an 85.4 per cent jump.

Infrastructure operations, including port services and roads, made up 34 per cent of the  company's business, dropping 7 per cent from a year earlier. Underlying profit from this segment  was HK$89 million,  falling 24.6 per cent from a year ago.

The company, a Hong Kong-listed conglomerate  owned by the Tianjin municipal government,  has other strategic investments, such as a winery and elevator operations.

Company chairman  Wang Guanghao, who  resigns   from today  after passing retirement age, said Tianjin Development  would increase its investments in utilities to capture  robust growth  in the Tianjin Economic-Technological Development Area,  a district in the city's Binhai New Area economic zone.

Mr Wang also said the company  was actively exploring property investments, such as hotels, as demand in the economic zone grows.

'As we're still in the middle of talks on the property projects, we can't disclose any further details at the moment,' Mr Wang said.

Despite such new ventures,  incoming  chairman Ren Xuefeng said Tianjin Development  would not be distracted from pursuing its core businesses.

Mr Ren  said the company  would still focus  on infrastructure and utility operations through acquisitions and restructuring.

Capital expenditure will be HK$1 billion each for this year and next.

The company has proposed an interim dividend of 5.4 HK cents, up 17 per cent year on year.

Tianjin Development's spun-off unit, Dynasty Fine Wines Group, posted an underlying profit of HK$100 million  for the first half, an increase of 21.6 per cent.

Dynasty contributed HK$45 million or 18 per cent to Tianjin Development's net profit. The company sold 29.5 million bottles of wine in the period, up 12.6 per cent.

The winemaker is planning to enlarge its market share by selling more mid-range and high-end wines because prices for  these categories can be  four times higher than low-end wines.

Bubbly business

Dynasty Fine Wines sees underlying income rise 22pc to HK$100m

Tianjin Development's interim revenue surged 40 per cent  to, in HK$: $1.6b



Tianjin Development  posts HK$237m net profit