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SHK's 26.2pc gain ends interim blues

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Why you can trust SCMP
Kenneth Ko

ASIA'S booming equity markets saw the net profit of Sun Hung Kai and Co (SHK) jump 26.2 per cent to $410.2 million last year, bouncing back from declining profits in the interim.

Turnover for the year to December increased 24.3 per cent to $919.9 million.

In accordance with new accounting practices, an extraordinary gain of $14.9 million reported in the 1992 accounts has been reclassified and included in contributions from associated companies.

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If the item was excluded, the financial services group would have posted an increase of 32.3 per cent in net profit.

The group attributed the higher-than-expected earnings growth to good performances by core businesses in broking, bullion, corporate finance, foreign exchange and fund management.

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In the first six months of last year, a provision for exposure to China B shares and the poor performance of the Sun Sun Chan foreign exchange fund knocked 16.6 per cent off its interim profit.

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