2014
2015
Cost
Fair Value
PROPERTY
Property revenue of $13.5 million decreased 17% and
profit of $9.9 million decreased 20% as a result of lower
occupancy. As a result of lower occupancy and subdued
property market outlook, Property recorded a fair value
loss of $2.0 million compared to $3.1 million gain in the
previous year.
A commercial investment property in Hong Kong was
disposed of during the year. The Group recorded a gain
of $0.3 million, being the difference between the carrying
amount of the property at fair value and net proceeds
received. Compared to original cost, the Group realised a
profit of $8.9 million from the sale of the property.
INVESTMENTS
Dividend income from quoted equity investments increased
43% to $89.5 million (2014: $62.6 million) due mainly to
higher dividends received from the Group’s investment in its
key strategic investments.
The increase in cost of investments portfolio was due mainly
to the reclassification of the Group’s retained interest in
associated company, Hua Han, to available-for-sale financial
assets measured at fair value of $154.5 million. Based on
cumulative cash dividends received and net proceeds from
the partial disposal, the Group has recovered fully its cash
capital cost invested in Hua Han. The remaining investment in
Hua Han represents unrealised cash gains in this investment.
The fair value of the Group’s investment portfolio decreased
from $2,311.5 million as of 31 December 2014 to $2,080.6
million as of 31 December 2015 mainly due to the decrease
in share prices of equity investments. As a result of depressed
equity market, net unrealised loss of $402.9 million from the
changes in fair value of investments was recorded in the fair
value reserve account in 2015.
PROPERTY (BUILDING OCCUPANCY RATES)
INVESTMENTS (COST VS FAIR VALUE) ($M)
F I NAN C I A L R E V I EW
78.2%
64.6%
2014
2015
0
500
1000
1500
2000
2500
602.8
788.6
2,311.5
2,080.6
32
HAW PAR CORPORATION LIMITED
