Sino Group reports 24.7% profit decline on slower home sales, higher revaluation losses

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Net profit amounted to HK$4.4 billion, down 24.7 per cent from HK$5.8 billion in its 2022-2023 financial year.

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Sino Group said there were lingering challenges such as high interest rates, sustained inflation and geopolitical tensions. Photo: Bloomberg

Cheryl Arcibal

Published: 8:43pm, 27 Aug 2024

Sino Land’s profit declined by about a quarter in its financial year ending in June, as sales of homes and car parks slowed while revaluation losses surged, according to the latest earnings report from one of Hong Kong’s major developers.

Net profit amounted to HK$4.4 billion (US$564 million), down 24.7 per cent from HK$5.8 billion in its 2022-2023 financial year, Sino Land said in a filing to the Hong Kong stock exchange on Tuesday.

Revaluation losses were more than three and a half times higher from a year ago at HK$580 million. Revenue from property sales for the financial year was HK$8.89 billion, down 25.5 per cent from HK$11.93 billion.

General view of the construction site of Villa Garda, developed by Sino Land, K Wah International and China Merchants Land, in Lohas Park. Photo: Sun Yeung

Property revenue mainly derived from residential units and car parking spaces at its Grand Victoria phases 2 and 3 in southwest Kowloon, as well as One Soho in Mong Kok and the remaining stock of other projects in Wong Chuk Hang, Ho Man Tin and Kwun Tong.

During the financial year, the group launched two new residential developments – La Montagne in Wong Chuk Hang, which is 6.8 per cent sold, and Villa Garda III in Tseung Kwan O, which is 34.9 per cent sold.

“Looking ahead the group has a pipeline of new projects to be launched,” Sino Land said. “These include Once Central Place in Central and Grand Mayfair III in Yuen Long, which have obtained presale consents.”

The developer added that presale consent is expected for two additional residential projects in Yau Tong and Lohas Park for the financial year 2024-2025.