Henderson Land Development : First-Half Net Profit Fell Despite Higher Revenue

By Yifan Wang

Henderson Land Development Co. said its net profit for the first half fell 62% from a year earlier despite higher revenue, as a substantial fair value loss on its investment properties dragged earnings.

The developer posted a net profit of 2.83 billion Hong Kong dollars (US$365.1 million) for the period.

Revenue rose 35% from a year earlier to HK$10.94 billion, thanks to an 83% surge in property sales, as the low-interest rate environment supported the real estate market.

Looking ahead, Henderson Land said it expects the operating environment to remain challenging amid the "lingering Covid-19 pandemic, strained Sino-U.S. relations and heightened geopolitical tensions."

The firm also expects potential further fair value losses on its investment properties, as the public health crisis pressures property prices.

Write to Yifan Wang at [e-mail]