Hong Kong Covid-19 curbs weigh on developers, as earnings tumble by as much as 60 per cent

Sino Land says profit for full year ending June decreased by 40.5 per cent from a year ago

Shun Tak Holdings says interim earnings slumped by 51.3 per cent, while Shui On Land reports 58 per cent drop

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People in face masks walk on the Mid-Levels escalator in Central. Uncertainties surrounding Covid-19, ongoing geopolitical risks, restrictions on travel, rising inflationary pressure and interest rate hikes have combined to interrupt the global economy, Sino Group owner Robert Ng Chee Siong says. Photo: Xiaomei Chen

Published: 8:55pm, 25 Aug 2022

Covid-19 restrictions dragged on the profits of Hong Kong developers in the January to June period, with declines ranging from 40.5 per cent to 58 per cent, filings with the Hong Kong stock exchange on Thursday show.

Sino Land, which is part of the Sino Group owned by billionaire Robert Ng Chee Siong and keeps to a July to June financial year, said its profit for the full year ending June amounted to HK$5.7 billion (US$726 million), a decrease of 40.5 per cent from a year ago. It declared a final dividend of HK$0.42 per share to be payable on November 2. Its share price retreated by 0.34 per cent to HK$11.62 each on Thursday.

“Uncertainties surrounding the intermittent waves of Covid-19 resurgence, ongoing geopolitical risks, restrictions on travel, rising inflationary pressure and interest rate hikes combined have brought interruption to the global economy,” Ng said.

“As we step into financial year 2022-2023, the group will remain vigilant in monitoring market developments, whilst proactively facing challenges and seizing opportunities ahead.”