Chinese Estates’ annual profit to narrow

373
Joseph Lau Leun Hung, Chairman, Chief Executive Officer of Chinese Estates Holdings Limited attends a AGM meeting in Hong Kong, Tuesday, May 15, 2007. (Tse Ka Yin/EyePress News)

Chinese Estates Holdings Ltd. expects its annual net profit to decline as much as 23 per cent year-on-year for the year of 2016 although it estimates annual revenue will surge by at least 138 per cent year-on-year at that same time.
In a filing with Hong Kong Stock Exchange on Monday evening, the company noted that ‘the group may record an increase in revenue ranging from 138 per cent to 148 per cent [with] a decline in profit ranging from 13 per cent to 13 for the year.’
For 2015, the company’s net profit attributable to owners of the company amounted to HK$7.7 billion (US$962 million), raking in some HK$1.54 billion in revenue.
According to the company, the estimated decrease in annual net profit is due to the decline in fair value gain on investment properties as well as the drop in share of results of associates, while disposals of subsidiaries, increase in sales of trading properties and other factors have boosted the year’s revenue.
Earlier this month, the company named Kimbee Chan Hoi Wan, the wife of its controlling shareholder Joseph Lau Luen Hung, as an executive director.
Former chairman and CEO of the company Mr. Lao stepped down from his positions in 2014 after Macau’s courts convicted him of bribery and money laundering in the corruption case of disgraced former Secretary Ao Man Long.