Hong Kong property developer K.Wah International recorded a 43 percent fall in profits to HK$251 million in the first half as there were fewer sales of properties during the period.

The builder's revenue was HK$716 million in the first six months this year, down 59.3 percent from HK$1,759 million last year.

Its net profits dropped 43 percent to HK$215 million this year from HK$439 million a year earlier.

The underlying profits, which excluded a property revaluation gain of HK$60 million, were HK$191 million in the first half.

The results were mainly attributed to the sale of the Great Hill, a complex of luxury houses and apartments in Sha Tin. Fourteen units and one house were sold for HK$700 million in the first half this year.

Ken Wong, associate finance director, said: "Approximately 28 units and 7 houses from the Great Hill will contribute HK$1.9 billion to the company."

Additional contributions were made from Shanghai K. Wah Centre and J Senses, which deliver recurring rental income. Facing market uncertainties, rental income has a long-term prospect to the company, Wong added.

K. Wah International is looking forward to increasing its rental income.

The number of serviced apartments and residential units of Jianguoxi Road project will be adjusted to boost rental income as the company believes that these units have high value appreciation potential.

There were originally 530 high-end residential units and 400 serviced apartment units.

The company is ready to launch over 10 projects of various scales and sizes in the next three years.

A total gross floor area of over 20 million sq ft will be developed in next five years including Shiu Fai Terrace at Stubbs Road, Welfare Road in Aberdeen and Tai Po Town Lot No 186 and 188.

(HK Edition 09/11/2008 page2)