Hotel revenue grew by 3% to HKD740 million (2015: HKD718 million) but operating profit declined 10% to HKD104 million during the reporting period. Hong Kong was adversely impacted by the weak market while the newly opened hotels in Mainland China have started to contribute. Logistics revenue decreased by 10% to HKD1.29 billion and operating profit by 12% to HKD293 million resulting from lower profit from Modern Terminals, the company said.
A flurry of government stimulus measures continued to revive the property sector amid a slowdown in the broader economy. The easing environment boosted housing demand and spurred a 58% increase in the company's attributable interest in contracted sales, representing 68% of the full-year target and above budget, the company chief executive officer Stephen Ng said.
Company management is upbeat on its business outlook in the second half and saying it is adjusting the tenant profile compositions in order to minimize the negative impact coming from online-shopping growth.
Wharf holding is 60% held by the Wheelock Group by the end of reporting period.
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