A man rides an escalator at Harbour City, Tsim Sha Tsui, one of Wharf's premier shopping malls in Hong Kong. (CALVIN NG / CHINA DAILY)
HONG KONG – Hong Kong-based conglomerate Wharf (Holdings) Ltd reported HK$1.04 billion (US$133.7 million) in net profit for the first half of the year, reversing the loss reported in the same period a year earlier, as the property developer recovers from the coronavirus pandemic.
Stephen Ng, Wharf’s chairman and managing director, said that although Hong Kong’s luxury property market is emerging from the gloom of the pandemic, the long sales period raises risks for the company
The company saw its revenue surge 122 percent year-on-year to HK$12.34 billion in the first six months, according to its interim results for 2021 released on Tuesday.
Of the total revenue, HK$2.43 billion was generated from the development of properties in Hong Kong, while HK$4.28 billion was from that on the mainland. The company also generated HK$2.68 billion from investment in properties on the mainland.
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Stephen Ng, Wharf’s chairman and managing director, said that although Hong Kong’s luxury property market is emerging from the gloom of the pandemic, the long sales period raises risks for the company.
Ng said profit from buying land for development on the mainland could be limited, given the mainland’s tightening housing policy. Demand for offices could also be relatively weak as tight controls on mainland technology companies discouraged them from expanding, he added.
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The company will take a wait-and-see attitude toward property development on the mainland, Ng said.
Wharf's shares closed at HK$26.3 on Hong Kong Stock Exchange on Tuesday, down 0.38 percent.
suzihan@chinadailyhk.com