Wanda Hotel’s revenue plummets 60% to HK$100.3 million
08/24/2017|11:43:01 AM|HKEXNews

Wanda Hotel Development Company announces the unaudited condensed consolidated results of the company and its subsidiaries for the six months ended 30 June 2017.

The Group’s revenue for the six months ended 30 June 2017 was approximately HK$100.3 million, compared to that of HK$258 million for the corresponding period in 2016.

The decrease was mainly due to a decrease of property sales revenue of approximately HK$74.1 million from PRC segment and a decrease in rental income of approximately HK$63.6 million from the Sydney Project.

Revenue of approximately HK$14 million, HK$74.5 million and HK$11.8 million was derived from the sales of properties, property leasing and property management service for the six months ended 30 June 2017 respectively.

During the Period, the Group’s loss attributable to the equity holders of the Company was approximately HK$299.5 million (six months ended 30 June 2016: HK$37.1 million). The increase in loss was mainly attributable to: (i) a non-recurrin g loss on disposal of the Madrid Project of approximately HK$329.7 million; (ii) a decrease in net valuation gain on investment properties of approximately HK$141.7 million; (iii) a decrease of gross profit of approximately HK$82.5 million as a result of the decrease in revenue; and (iv) an increase of income tax expense of approximately HK$17.2 million.

The Group had total cash and bank balances of approximately HK$5,261 million as at 30 June 2017 as compared with approximately HK$2,680.6 million as at 31 December 2016.

During the Period, the Group had completed the disposal of the company’s Madrid project in Spain, which has strengthened the liquidity and financial position the group for development for the existing London Project in UK, Chicago Project in America, Gold Coast Project and Sydney Project in Australia, and Guilin Project and Fuzhou Project in China.

The Company entered into a non-binding framework agreement with connected parties on 9 August 2017 in relation to a possible asset restructuring, which is still subject to further negotiation amongst the parties.

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