Polytec net profits fall 56pct y-on-y in 2019

Hong Kong-based investment holding Polytec Asset Holdings Limited revealed that net profit attributable to its equity shareholders has fallen 56 per cent year-on-year to HK$707 million (US$91.1 million) in 2019, the group’s latest financial report indicates.

If excluding revaluation gains from the joint venture’s investment properties net of tax and fair value changes on its interests in the property development projects, the group’s profit reported an even higher decrease of 68 per cent to HK$447 million.

This amounted to 15.93 HK cents per share as opposed to the 36.46 HK cents in 2018.

The group still ended up receiving HK$720 million in net income distributions last year from its La Marina project in Macau, but the decrease in such income was considered – together with losses in oil production and exploitation assets in Kazakhstan – one of the reasons for the large drop in net profits.

Construction works for the La Marina were completed and its respective occupation permit obtained in July, 2017, with pre-sale units gradually delivered to the buyers since late December of 2017.

‘While the activity in the property market in Macau slowed in 2019, the Group’s La Marina development project was still well received by the market and the sales of its residential units for the year under review remained satisfactory due to its excellent quality and design. The income to be received from the Group’s interest in this development project is expected to make an important contribution to the Group’s results in the coming one to two years,’ Polytec noted.

Rental income generated last year from the group’s owned The Macau Square also represented 91.6 per cent of all HK$81 million in rental income received in 2019.

Polytec is the parent group of Polytex Corporation Ltd. which developed the Pearl Horizon residential project – also in the Areia Preta area – which was stopped following the Macau government’s decision to revoke the company’s land concession and reclaim the land plot where the project was being developed.

Government projects to turn the reclaimed land into replacement public housing are currently under evaluation at the Urban Planning Committee, with land to be into four plots, plot A will accommodate Pearl Horizon unit buyers and will have 2,000 housing units, plots B and C will be used for temporary accommodation within the scope of urban renewal projects, and will have some 2,500 housing units.