Lippo profit down 62%

Lippo profit down 62%

HONG KONG (AFP): Hong Kong banking, property and trading group Lippo Ltd. announced yesterday a 62 percent fall in net profits to HK$291.6 million (US$37.7 million) in the six months to June.

Turnover fell 74 percent to HK$894.7 million, resulting in an interim dividend of seven cents, down from 16.7 cents a year earlier, to be paid Nov. 3.

"In difficult conditions in some of the markets in which Lippo Ltd. and its subsidiaries operate, acceptable results were achieved during the period under review," it said.

Those factors included "prolonged softness" in the Hong Kong property market, as well as slower consumer spending in the territory, it said.

Lippo stock in Hong Kong closed down 12.5 cents at HK$4.60.

For the second half, Lippo was "cautiously optimistic" that conditions would improve, enabling it to "continue to explore suitable investment opportunities."

It added that negotiations towards selling Lippo's controlling interest in property trading group Hongkong China Ltd. to an "independent third party" were continuing, with a deadline of Oct. 31 set for striking a deal.