Update | Hang Lung Properties’ first half profit dips 4pc on lower rental income
Upbeat chairman Ronnie Chan Chi-chung says despite the sluggish performance in the sector in recent years, ‘the winter is coming to an end’
The chairman of Hang Lung Properties, the luxury mainland shopping mall operator, believes the worst is over for the top-end retail industry after the company’s first-half core profit dipped on lower rental income.
“Despite the sluggish performance in the sector in recent years, the winter is coming to an end,” chairman Ronnie Chan Chi-chung said during a post-results briefing on Thursday.
He said the luxury sector of his business was the hardest hit but it has shown signs of recovery.
The company’s marquee mall in Shanghai, “Plaza 66”, is seeing tremendous growth after a series of upgrades were made, he added, with rental revenue reported to have risen 23 per cent.
“We achieved solid performance with our core leasing business in the first half against a backdrop of challenging business conditions and the 5 per cent depreciation in the yuan.”
“I remain cautious about the business environment in the short term but I’m optimistic long term, “ he said.