Cheung Kong Property Unveils First Interim Result
after Asset Regrouping
August 25th, 2015
Cheung Kong Property Holdings, the property development arm of the Cheung Kong and Hutchison Group, reported first interim result after asset reorganizing earlier in the year with profit attributable to shareholders rose to HKD 6.89 billion, 22 percent higher than the profit of the property businesses reported by the Cheung Kong Group for the same period last year. Total turnover increased 24 percent to HKD 16.09 billion.
The CKP’s property development portfolio comprises properties developed by the Cheung Kong Group and those developed by the Hutchison Group. Cheung Kong Property was listed on the Hong Kong Stock Exchange since June 3rd 2015 after major asset reorganization of the Cheung Kong and Hutchison Group.
The real estate development company managed to maintain its net debt to net total capital ratio at the interim period at 9.6 percent level. The property spin-off of Li Ka Shing’s Cheung Kong and Hutchison Group holds premier property asset in Hong Kong including Cheung Kong Center, Hutchison House, and China Building.
Turnover of property sales recognised for the period was HKD 15.765 billion (2014 – HKD12.520 billion) with HKD 10.33 billion from Hong Kong, HKD 5.3 billion from China, while HKD 124 million from Singapore. Profit contribution from property sales (including share of joint ventures) for the period was HKD 3.816 billion, among which HKD 2.71 billion from property sales in Hong Kong and HKD 1.06 billion from mainland China.
Turnover of property rental for the period was HKD 1.55 billion and included rental income derived on the property portfolio previously held by Cheung Kong Properties and Hutchison Holdings. Contribution from property rental (including share of joint ventures) for the period was HKD 1.331 billion with HKD 1.16 billion from Hong Kong market.The CKP group’s investment properties are mostly located in Hong Kong and comprise mainly office, retail and industrial properties, which accounted for 39 percent, 45 percent and 5 percent respectively of the turnover of property rental for the period.
“The overall results are expected to improve over the first half of 2015 barring no unforeseen circumstances. With a land bank sufficient for development over the next four to five years, we are well positioned to boost overall growth by building on a stronger operating base both in terms of asset type and geographical locations”, company chairman Li Ka Shing said in a statement.
Cheung Kong Center in Central, Hong Kong Picture Credit:APMR