Property agent Midland posts worst interim results in four years as Hong Kong market hammered by coronavirus, social unrest
- Revenues declined by 15 per cent in the first half, reflecting the uncertain conditions Midland had to operate in as the city grapples with an unprecedented recession
- Measures to stem the spread of Covid-19 caused a halt in business activities that slashed company revenues, and triggered salary cuts and redundancies
Midland Holdings, one of Hong Kong’s largest property agents, lost HK$24.3 million (US$3.1 million) in the first half, a reversal of the HK$94 million profit it reported a year ago and its worst interim results since 2016.
In 2019, Midland recorded an annual loss of HK$69 million.
Its non-residential property sibling, Midland ICI, also reported a loss of HK$7.8 million in the period, compared with profit of HK$21 million a year ago. Revenues plunged by more than half to HK$141.4 million.
While measures to stem the spread of Covid-19 were relatively successful, they caused a halt in business activities that slashed company revenues, and triggered salary cuts and redundancies for many workers.
“The net loss recorded during the reporting period was mainly attributable to the adverse market conditions caused by the unprecedented Covid-19 pandemic and the associated combating measures in Hong Kong and mainland China,” the company said in a filing to the stock exchange.
These measures, it added, led to a significant drop in property prices and transactions in January to June.