SHKP’s earnings drop as slowdown erodes asset value amid dampened sentiment

Net profit dropped 18 per cent from a year earlier to HK$7.5 billion (US$967.7 million) in the six months ended December 31, it said in a stock exchange filing on Thursday, after accounting for a HK$2.9 billion decline in the fair value of its assets. Sales jumped 45 per cent to almost HK$40 billion.

“Lowered expectations on US interest-rate cuts have dampened business sentiment and curbed the growth of economic activity,” chairman and managing director Raymond Kwok Ping-luen said. Increased uncertainties from heightened geopolitical tensions and unpredictable trade policies also played a part, he added.

Hong Kong’s economic growth was expected to be relatively slow, Kwok said, adding that SHKP would strive to control its gearing levels and build sizeable recurring income from its portfolio of rental properties and non-property businesses. The firm would also aim to generate more cash from quicker sale of homes.

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Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city

Shop occupancy recovers in Hong Kong, but vacant stores still visible across the city

The group expects to launch several projects this year, including the shopping mall beneath the Millennity in Kwun Tong and The Cullinan Sky Mall located next to the Kai Tak MTR station. The International Gateway Centre in West Kowloon, with 2.6 million sq ft of office space, would be ready for handover from 2026, it said.