Construction firm sees earnings jump 386pc in the first half
Shui On Construction and Materials saw its net profit jump 386 per cent to HK$491 million in the six months to September due to a one-off HK$530 million contribution from the initial public offering of its mainland property subsidiary Shui On Land.
Shui On said gains from the Shui On Land share sale would continue to improve its bottom line in the second half, when it expects to see increased earnings from its distressed property developments, cement business and venture capital investments.
More contribution derived from the listing would be seen in the second half, chairman Vincent Lo Hong-sui said.
Shui On originally owned 28.7 per cent of Shui On Land but its holding fell to 17.8 per cent after the flotation.
During the period, the company received a contribution of HK$619 million from Shui On Land. Stripping out the HK$530 million profit from the float, Shui On also shared HK$90 million property earnings from Shui On Land.
Profit from its new core business - distressed property development - amounted to HK$32 million during the period. The company has so far invested about HK$300 million in five incomplete distressed projects - one each in Dalian, Qingdao and Chengdu and two in Beijing.
