Shun Tak Holdings profit down 90 pct in 2008

Shun Tak Holdings profit down 90 pct in 2008

Shun Tak Holdings Ltd., the property developer and ferry operator controlled by Stanley Ho Hung Sun's family, said Thursday its 2008 profit plunged 90 percent because of the cost of inventories and after it wrote down the value of investment properties.

Net income was 101.4 million Hong Kong dollars, or 4.3 cents a share, down from 1.01 billion Hong Kong dollars, or 43.9 cents, in 2007, the company said in a Hong Kong Stock Exchange filing Thursday.

Sales rose 31 percent to 4.35 billion Hong Kong dollars from 3.32 billion Hong Kong dollars.

Property prices and sales in Hong Kong and Macau have slumped amid the global recession, hurting stocks of land and apartments held by developers.

The cost of property inventories for Shun Tak jumped to 1.4 billion Hong Kong dollars last year, from 342 million Hong Kong dollars, according to the statement.

Shun Tak's ferry unit suffered as Macau 's visitor arrivals dropped 15 percent to 22.9 million last year.

It posted an operating loss of 150 million Hong Kong dollars last year from a profit of 259 million Hong Kong dollars in 2007 as the Macau-Hong Kong route carried eight percent fewer passengers and fuel costs rose 42 percent.

Sunday, 05 April 2009
Macau Daily Times