China News Service, Hong Kong, March 4 (Reporter Shi Bingyun) Hong Kong real estate investor Wharf Real Estate released its 2020 financial report on the 4th, and its performance turned from profit to loss of 7.85 billion yuan (HK$, the same below).

Wharf Real Estate said that the epidemic may continue to drag down business performance in the short term.

　　The financial report released by Wharf Real Estate pointed out that the new crown epidemic has had a serious impact on the company's business. Basic net profit in 2020 decreased by 24% to 7.477 billion yuan. Taking into account the value adjustment loss of investment properties, the annual loss was 7.85 billion yuan.

　　According to business analysis, the financial report showed that the hotel business was hit hardest, with an unprecedented loss of 379 million yuan.

The company said that even though it worked hard to develop the local customer market last year, hotels still rely heavily on tourists, and the hotel market remained difficult in January and February this year.

　　Wharf Real Estate pointed out that in the fourth quarter of last year, the decline in sales in shopping malls had slowed, and local retail activities were gradually recovering.

The company’s chairman and managing director Wu Tianhai commented at the press conference that day that Hong Kong’s retail industry is still “cloudy and rainy”, and when it will “clear up” still depends on the development of the epidemic.

　　As for office buildings, under the epidemic’s “work from home” arrangement, the vacancy rate has risen, and rents have also fallen in line with market adjustments. By 2020, Harbour City office revenue and profit will both fall by 2%, Times Square office revenue will fall by 6%, and profit will fall by 7% .

　　Wu Tianhai said that although Hong Kong people's online shopping habits and trends have increased after the epidemic, it is believed that it will have little effect on the company's sales for the time being.

He said that Hong Kong people mostly buy daily necessities when shopping online. Luxury and fashion stores in shopping malls such as Harbour City and Times Square account for a relatively large proportion. Hong Kong people do not buy these categories online.

　　Wharf Real Estate will also pay a second interim dividend of 0.69 yuan per share. The total dividend for the whole year is 1.47 yuan, down 28% year-on-year.

On the same day, Wharf Real Estate's share price fell 2.42% to 44.3 yuan following the market.

(Finish)