Business
21:03, 24-Aug-2017
Wanda Hotel reports HK$300 million first-half loss
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A hotels subsidiary of Chinese conglomerate Wanda has reported a loss of 299 million Hong Kong dollars (38.2 million US dollars) in the first half of 2017, mainly due to the loss from disposal of a Madrid project as it faces intensifying scrutiny from the Chinese government into overseas investments.
Wanda Hotel Development, Wanda Group’s only Hong Kong-listed subsidiary, made a one-off loss of 330 million Hong Kong dollars on its disposal of the Wanda Madrid Development project, according to the company’s filing to the Hong Kong stock exchange on Wednesday.
Wanda Hotel bought the Edificio Espana in 2014 for 265 million euros and sold it in June for 272 million euros after a two-year dispute with the local government over renovating the landmark tower. It was hurt in the deal by the devalued euro.
Big Chinese companies have been under increasing scrutiny this year as the national government steps up its clampdown on capital outflows to protect the yuan from weakening further. Property and entertainment investments have been a particular focus.
After selling the Madrid project, Wanda Hotel still holds four overseas projects – in the UK, US and Australia.
The company’s revenue for the first six months dropped 61 percent year on year to about 100 million Hong Kong dollars mainly due to property sales decrease in the Chinese mainland and declining income from a Sydney project.
On Wednesday Dalian Wanda Commercial revealed it had dropped a 470-million-pound purchase deal for Nine Elms Square in London.