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Wharf sees 2022 profits tumble 92 per cent as pandemic batters Hong Kong, mainland China property revenues
- The developer saw every segment of its operations slow down amid what the company called ‘weak markets’ and ‘pandemic woes’
- Wave after wave of lockdowns in mainland China, and tough quarantine requirements for inbound travellers in Hong Kong meant the company’s hotels struggled too
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Elise Makin Beijing
Hong Kong-listed Wharf (Holdings) delivered a lacklustre performance in 2022, suffering heavy losses across the board as the pandemic, and in particular China’s strict zero-Covid measures, hurt the property market.
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The developer saw every segment of its operations in Hong Kong and mainland China slow down, according to its annual report released on Thursday. Net profit for the year fell 92 per cent to HK$303 million (US$38.6 million) amid what the company called “weak markets” and “pandemic woes”.
Wharf’s property sales plummeted 74 per cent to HK$6 billion, while rental income dropped 11 per cent.
Its business has been hit hard by Covid-19 before, but this is the first time the pandemic has led to losses in all segments and a drop in net profit.
In 2020, the first year of the pandemic, the developer still managed to add 14 per cent in net profit to HK$3.09 billion. The following year, its profit increased 7 per cent to HK$3.64 billion despite “waves of Covid-19” hampering recovery.
Last year, the company said, the pandemic wiped HK$10 billion off its assets, reducing their value to HK$152 billion.
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