Wharf firms up balance sheet as Hong Kong home sales cushion profit slump

Hong Kong developer Wharf (Holdings) is increasingly relying on Hong Kong’s luxury-home market to offset weakness in China" class="entity-link entity-location" data-entity-id="142227" data-entity-type="location">mainland China, while paring investments and building up cash as it navigates an uncertain outlook.Revenue from Wharf’s Hong Kong development properties nearly tripled to HK$1.35 billion (US$172 million) from HK$475 million in the first half, with operating profit rising more than fivefold to HK$166 million, according to its interim results announced on Tuesday. That helped offset a 54 per cent drop in revenue from mainland development properties, where the company booked a HK$547 million impairment provision.The contrast highlights how improving buyer sentiment and transaction activity in Hong Kong are providing a rare bright spot for the developer as China’s prolonged property downturn continues to weigh on its remaining mainland projects.