Hong Kong-listed property group Sino Land saw a huge jump in annual net profit, but recorded a decline in underlying profit, dropping 2.62 percent for the year due to lower property sales.
Sino Land’s net profit, including revaluation surplus, surged 63 percent to HK$6.09 billion, while underlying earnings, excluding a HK$2.59-billion property revaluation gain, dropped to HK$3.51 billion from last year’s HK$3.6 billion.
Property sales revenue slumped 49 percent to HK$4.57 billion from HK$6.81 billion in the previous year. This was largely attributed to the five completed projects, which have a total gross floor area (GFA) of over 2.2 million sq ft, compared with nine completed projects in 2009, which have a total GFA of over 3.2 million sq ft.
The primary contributor for the sales was the Lake Silver located in Ma On Shan.
The company said it plans to complete five projects for the fiscal year to June next year, with total GFA of more than of 1.3 million sq ft. The luxury residential project located in Tai Kok Tsui, The Hermitage, will be the main driver for the result. Over 89 percent of the 964-unit development has been snapped up since it was launched in June.
Meanwhile, rental income climbed 5.8 percent to HK$2.4 billion. With four investment properties expected to be completed by June next year, rental income is expected to continually increase.