Midland Holding (01200.HK) announced that according to preliminary review of the unaudited comprehensive management accounts of the group for the five months ended on May 31, 2024, the equity holder's share of net profit was approximately HKD 170 million, and based on the group's existing information, the equity holder's share of net profit for the six months ended June 31, 2023 was approximately HKD 39 million. It is expected that the equity holder's share of net profit for the six months ended June 30, 2024, will increase significantly.
The significant growth in the group's performance is based on factors including:
(1) The significant increase in operating profit of "Midland Property" and "Hong Kong Properties" under the group for the five months ended May 31, 2024, compared to the same period last year. This improvement is due to (i) the success of seizing the rebound of the Hong Kong residential property market from March to May 2024; (ii) the group's stable market share in Hong Kong; and (iii) the optimization of the group's operation efficiency. And,
(2) Although the business environment of the group's operations in mainland China is extremely difficult, with a series of strategic measures implemented in the last quarter of 2023, including promoting a new sales management team (along with a new CEO) and a series of new measures (including repositioning its business model and streamlining its operations in mainland China), the group's operational performance in mainland China has improved significantly.
Despite the strong initial reaction to the withdrawal of all tough measures from the market, the local property market still faces risks and challenges such as high interest rates, geopolitical risk, and uncertain economic outlook. The group will continue to strive for market share while continuing to control costs.