Henderson Land, Hong Kong’s third biggest developer, sees challenging year ahead as 2019 profit slumps 26 per cent
- The developer, founded by the city’s richest man, said the coronavirus pandemic and social unrest will create a ‘challenging’ environment
- Meanwhile, Chinese Estates, owned by billionaire Joseph Lau, reported that profit fell 22 per cent to HK$790 million last year
Henderson Land Development, the third largest developer in Hong Kong, sees a “challenging” year ahead after posting a 26 per cent drop in core profit for 2019.
Chairmen Peter Lee Ka Kit and Martin Lee Ka-shing on Monday reported the company’s first set of annual results since taking over last year from their father, Lee Shau-kee, the city’s richest man.
“Hong Kong’s economic outlook is still hindered by unfavourable factors, including those stemming from the protracted local social unrest and spread of the novel coronavirus infection … It is expected that the operating environment for the group’s various businesses will be challenging this year,” said the company in its annual results statement filed to the Hong Kong stock exchange late on Monday.
“Rental returns and market values of the group’s properties in Hong Kong have been adversely affected,” said the company, which owns retail space in more than 20 shopping malls across the city, including the IFC Mall in Central.
Hong Kong’s economy is projected to shrink 7.5 per cent in the second quarter, putting it on track for a 4.8 per cent decline this year, according to Standard Chartered Global Research.
Known affectionately as Fourth Uncle in Hong Kong, Lee Shau-kee, who turned 91 in March, stepped down last May.
Lee is the wealthiest tycoon in Hong Kong with a net worth estimated by Forbes at US$26.5 billion.
