Hang Lung boss Ronnie Chan says business environment has never been so tough

Hang Lung Properties, which focuses on investing in shopping malls in Hong Kong and mainland China, says the business environment has never been as tough as at this time and the retail sector will face more challenges ahead.

“US elections, Brexit, terrorism, and China’s slowing economy, these are all problems, I have never seen so much market uncertainty at the same time in my decades of experience,” chairman Ronnie Chan told reporters at the firm’s interim results briefing yesterday.

“We are striving to have some profits in Hong Kong as mainland China is more challenging,” he said.

Regarding the fire at Amoycan Industrial Centre, a Hang Lung property, last month that killed two firemen, Chan said the fire’s cause and the safety of the building are still being investigated. The building’s conversion into hundreds of mini-storage units made the fire hard to put out.

Meanwhile, the developer saw underlying profit rise 29 per cent year on year to HK$3.17 billion in the six months ended June 30, in line with market expectations, thanks to strong sales of its Long Beach residential project during the period.

Revenue was up 37 per cent to HK$6.3 billion.

However, core rental income from mainland China fell 4 per cent to HK$2.04 billion, with operating profit declining 9 per cent as some malls in lower-tier cites struggle amid sluggish demand.