Wanda Hotels and Resorts’ income for 2014 dropped HK$1.162 billion (approx: US$150 million) and the value of its property investments in Fujian Province decreased HK$147 million. Its sales overheads also ballooned to HK$107 million due to a major increase in pre-sales activities during 2014.
Wanda Commercial Properties’ report showed earnings nosedived 92.26% y-o-y from HK$88.7 million in the six months period up to June 30, 2014, compared to HK$1.146 billion earnings recorded in the same period in 2013. Company shareholders took unaudited losses of around HK$57.8 million in this period, a 71.7% reversal of the HK$204.3 million profit during the same period in 2013.
Wanda Commercial Properties said the sale of a subsidiary in June 2013 contributed HK$875.5 million earning and was the main reason for the significant difference in mid-term revenues of 2014. The slowdown in the Fuzhou property market in the first half of the year also led to a drop of around HK$188.7 million in revenue.
Wanda Commercial Properties will also propose a name change to Wanda Hotel Development Company Limited at its shareholder meeting slated for September 18, 2015.(Translation by David)
