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HONG KONG: Henderson Land Development, the developer in the spotlight over controversial flat sales at its luxury 39 Conduit Road development, said underlying profit fell 37.36%, mainly due to a loss from the cancellation of the sale of 20 units at the Mid-Levels project.
The developer said underlying profit, which excludes property revaluation gains, amounted to HK$1.32 billion (RM533.77 million) for the six months to June. The result reflected the HK$734 million loss caused by the cancellation of sales of 20 flats at its 60%-owned 39 Conduit Road and a HK$32 million loss at another project.
Bottom-line profit, including property revaluation gains, was HK$7.66 billion, up 75.24% from HK$4.37 billion a year earlier.
Directors declared an interim dividend of 30 HK cents per share, unchanged from last year. The interim dividend will be payable in cash, with an option to receive new and fully paid shares in lieu of cash under the scrip dividend scheme.
During the period, turnover from property sales totalled just HK$18 million after deducting HK$2.67 billion arising from the cancelled flat sales. Rental income was HK$1.49 billion, up from HK$1.38 billion.
Henderson said the losses from the cancelled sales might be reduced for this financial year if it sold any of the 20 units in the second half.
The controversy over the luxury Mid-Levels project erupted after the company said in October last year that it had sold 24 units at the building. It said one of them fetched as much as a record HK$88,000 per square foot in terms of saleable area. Eight months later, it said 20 of the sales had fallen through, sparking accusations of market manipulation and a government investigation.
Henderson has denied any wrongdoing and insisted that the transactions were genuine. But the Commercial Crime Bureau seized documents related to the uncompleted sales. It has invited representatives of the developer to help with the investigation. Analysts say the saga has tainted the company's public image.
Looking ahead, the company said it would have 800 residential units available for sale, including 39 Conduit Road flats, a luxury house project at Headland Road and projects in Wan Chai and Tsim Sha Tsui.
Meanwhile, its infrastructure unit Henderson Investment said net profit rose 105% to HK$84 million. Directors declared an interim dividend of two HK cents a share, unchanged from 2009. — South China Morning Post
The developer said underlying profit, which excludes property revaluation gains, amounted to HK$1.32 billion (RM533.77 million) for the six months to June. The result reflected the HK$734 million loss caused by the cancellation of sales of 20 flats at its 60%-owned 39 Conduit Road and a HK$32 million loss at another project.
Bottom-line profit, including property revaluation gains, was HK$7.66 billion, up 75.24% from HK$4.37 billion a year earlier.
Directors declared an interim dividend of 30 HK cents per share, unchanged from last year. The interim dividend will be payable in cash, with an option to receive new and fully paid shares in lieu of cash under the scrip dividend scheme.
During the period, turnover from property sales totalled just HK$18 million after deducting HK$2.67 billion arising from the cancelled flat sales. Rental income was HK$1.49 billion, up from HK$1.38 billion.
Henderson said the losses from the cancelled sales might be reduced for this financial year if it sold any of the 20 units in the second half.
The controversy over the luxury Mid-Levels project erupted after the company said in October last year that it had sold 24 units at the building. It said one of them fetched as much as a record HK$88,000 per square foot in terms of saleable area. Eight months later, it said 20 of the sales had fallen through, sparking accusations of market manipulation and a government investigation.
Henderson has denied any wrongdoing and insisted that the transactions were genuine. But the Commercial Crime Bureau seized documents related to the uncompleted sales. It has invited representatives of the developer to help with the investigation. Analysts say the saga has tainted the company's public image.
Looking ahead, the company said it would have 800 residential units available for sale, including 39 Conduit Road flats, a luxury house project at Headland Road and projects in Wan Chai and Tsim Sha Tsui.
Meanwhile, its infrastructure unit Henderson Investment said net profit rose 105% to HK$84 million. Directors declared an interim dividend of two HK cents a share, unchanged from 2009. — South China Morning Post
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