ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Articles

Hong Kong conglomerate 1st-half profit up 23% on property business

HONG KONG -- Hong Kong conglomerate Swire Pacific announced Thursday that it logged a net profit of 7.98 billion Hong Kong dollars ($1.03 billion) for the six months ended June, up 23% from a year earlier. The jump was mainly due to higher profits from its property business and aviation segment.

John Slosar, chairman of Swire Pacific

    The company's total revenue increased 5% to HK$31.63 billion. Underlying profit, which adjusts for swings in the valuation of investment properties, soared 12% to HK$4.83 billion.

     Within the group, the Hong Kong-listed Swire Properties reported a net profit of HK$8.49 billion, up 32%. Higher rents from office properties in the city and from retail properties in mainland China pushed up earnings. It also benefited from solid sales in a new residential property in Hong Kong. As a result, attributable underlying profit in the group's property segment rose 5% to HK$3.21 billion.

     In the aviation segment, affiliate Cathay Pacific Airways, the region's flag carrier, also performed well, supported by lower fuel prices amid the recent decline in global crude oil prices. The airline contributed to the group with a profit of HK$887 million, rocketing from HK$156 million a year earlier.

     "The group's results are overall satisfactory," Chairman John Slosar told reporters the same day. He sounded a positive note on the company's property business, saying despite the fall in retail sales in the city due to weak tourism from the mainland, "Our retail properties remain fully let."

     The stock prices of Swire Pacific and Swire Properties barely budged Thursday -- with the former slipping 0.8% to HK$90.20 and the latter nudging up 0.4% to HK$22.90 -- as the results were in line with market expectations.

     Swire Pacific, one of Hong Kong's leading corporations, is a diversified company that engages not only in property development and aviation but also in beverages, marine services and trading. Its total assets exceeded HK$366 billion as of the end of June.

 

     

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media