LONDON (Alliance News) - Hong Kong-based China property development and investment company Asian Growth Properties Ltd Friday posted a rise in pretax profit for 2014 boosted by a gain from changes in the fair value of its properties.
The company posted a pretax profit of HKD746.3 million, up from HKD556.6 million, despite seeing revenue fall to HKD648.7 million from HKD878.6 million, as it benefited from a HKD617.8 million gain from the fair value changes on its investment properties.
Asian Growth Properties said it had continued the development of various property projects in Hong Kong and mainland China during the year. It saw stable returns from properties in both regions, and its Crowne Plaza Hong Kong Causeway Bay property saw improvements in room rate compared to the previous year.
It did not propose the payment of a dividend for 2014, nor did it pay one for 2013.
"At no time in the past few years has the group had to face the challenges it currently faces in terms of geopolitical risk globally," the company said.
Asian Growth Properties said that China is experience "a dramatic slowdown in both export and import growth with the People's Bank of China reducing capital adequacy ratios in an attempt to encourage growth."
"How many of these geopolitical risks play out in 2015 remains the subject of conjecture. However, the group will continue to remain flexible and opportunistic in its approach to its assets and continue to hold large amount of cash in its balance sheet to weather the current prevailing conditions in global markets," Asian Growth Properties added.
Shares in the company were untraded Friday. They last closed at 16.90 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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