Hong Kong developer K Wah reports first decline in core profit since 2017 in absence of dividend from chairman Lui Che-woo’s casino firm Galaxy Entertainment

K Wah International Holdings, the property developer owned by one of Macau’s biggest casino owners, reported its first drop in annual core earnings since 2017 after a Covid-19 led tourism slump deprived it of dividends from the gambling business.

The company’s 2021 underlying profit, excluding a revaluation gain on investment properties, fell 17.4 per cent to HK$2.93 billion (US$374 million) from HK$3.54 billion, K Wah said in a statement on Tuesday. Net profit taking the revaluation gain into account rose 3 per cent to HK$3.4 billion.

The developer, which is owned by Lui Che-woo, said no dividend was received from a 3.73 per cent stake in Galaxy Entertainment Group, which is also chaired by Lui, during the year. In 2020, it received HK$73 million in dividend from Galaxy, which owns and operates hotels and casinos in Macau.

“The global economy is expected to be volatile and growth is less visible, as there are more uncertainties resulting from the anticipated interest rate hikes led by the US, along with its tightening of liquidity to curb its rising inflation,” the company said.

Source: https://www.scmp.com/business/article/3171411/hong-kong-developer-k-wah-reports-first-decline-core-profit-2017-absence