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Hong Kong developers Sun Hung Kai Properties, Hysan post declining profits, say more challenges ahead

  • SHKP says its interim core profit fell 15 per cent in the six months that ended in December
  • Hysan says its 2021 underlying profit declined by 3 per cent and sales shrank 2.7 per cent

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Hysan Development’s Hysan Place shopping centre in Hong Kong’s Causeway Bay district. Photo: Dickson Lee
Pearl LiuandMartin Choi

Two of Hong Kong’s biggest property developers and retail landlords have posted declining results and foresee more challenges ahead, as the city’s social distancing rules keep consumers away from shopping centres.

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Sun Hung Kai Properties (SHKP), which owns neighbourhood shopping centres New Town Plaza and Yoho Mall in Sha Tin and Yuen Long, two districts with the most number of Covid-19 cases, said its interim core profit fell 15 per cent to HK$14.8 billion (US$1.9 billion) in the six months that ended in December from a year ago. The decrease was mainly due to lower sales completion at residential projects, SHKP said.
Hysan Development, the largest landlord in Hong Kong’s Causeway Bay shopping district, said its 2021 underlying profit declined by 3 per cent to HK$2.3 billion, while sales shrank 2.7 per cent to HK$3.6 billion.

“The recent outbreak of Omicron-variant infections is expected to bring additional challenges to the local economy, particularly domestic consumption and contact-intensive industries,” Raymond Kwok Ping-luen, SHKP’s chairman, said in a filing to the Hong Kong stock exchange on Thursday.

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