In this Jan 15, 2015 photo, Lee Shau-kee, Hong Kong real estate tycoon and chairman of Henderson Land Development, poses for media during a press conference. (ROY LIU / CHINA DAILY)
Henderson Land Development, one of Hong Kong's top four developers, reported a 34 percent drop in its profit attributable to equity shareholders for the first half of 2022 compared to a year ago, as Miramar Hotel and Investment became a subsidiary of the group in the same period last year and resulted in an attributable gain.
The developer reported its profit attributable to equity shareholders for the six months ended June 30 was HK$5.14 billion ($0.65 billion), down 34 percent from the HK$7.8 billion recorded a year ago. This was due mainly to an attributable gain of HK$1.89 billion which was recognized in the same period last year as a result of the consolidation of assets and liabilities of Miramar Hotel and Investment Company re-measured at fair value on April 14, 2021, upon becoming a subsidiary of the Group.
The company maintained an interim dividend of 50 HK cents per share.
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The attributable revenue from its property sales in Hong Kong increased 10 percent to HK$4.08 billion, while pre-tax profit contribution from Hong Kong property sales dropped 19 percent to HK$0.98 billion.
The developer completed the acquisition of full ownership of a number of development projects in the first half. The 22.8 percent-owned Yau Tong Bay commercial and residential project is pending recalculation of land premium by the government and is expected to provide around 900,000 square feet of gross floor area
At the end of June this year, the property giant's attributable contracted sales, which are yet to be recognized in the accounts, amounted to approximately HK$15.16 billion, of which approximately HK$7.76 billion is scheduled for recognition in the second half of 2022 upon completion of development and handover to buyers.
During the period, the group added around a further 230,000 square feet of land in the New Territories, expanding its land reserves in the New Territories to approximately 45.1 million square feet, and making it the largest land holding in the area in Hong Kong.
About 80 percent to 100 percent ownership was obtained in newly acquired urban redevelopment projects, with a total attributable gross floor area of approximately 3.9 million square feet, involving a total of 27 projects.
Meanwhile, the developer completed the acquisition of full ownership of a number of development projects during the period. The 22.8 percent-owned Yau Tong Bay commercial and residential project is pending recalculation of land premium by the government and is expected to provide around 900,000 square feet of gross floor area.
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Regarding its land expansion in the Chinese mainland, Henderson Land also added a joint venture development project in Suzhou, providing it with approximately 350,000 square feet of attributable gross floor area. The group now has sufficient land reserves in both Hong Kong and the Chinese mainland to support its business development needs in the coming years.
Henderson Land Development’s co-chairmen Lee Ka-shing and Lee Ka-kit noted that the Hong Kong SAR government has launched a new round of consumer vouchers to stimulate the economy and is committed to promoting greater integration with the Greater Bay Area, which will help enhance Hong Kong's status as an international financial center in the long run.
They said they expect the city will soon resume quarantine-free cross-border travel to promote continued steady growth in the property market and the economy as a whole.
The company’s share price lost 1.62 percent to HK$27.25 per share on Tuesday.
suzihan@chinadailyhk.com