Overall revenue for the Junefield Department Store Group dipped 11 per cent to about HK$316 million for the financial year ended December 31.
This resulted in a $69.4 million net loss attributable to the company owners, a significant 34 per cent decrease, the group says in its earnings statement.
The group’s property management and agency services business was stable, with a turnover and net profit of about $18.103 million (2014: $18.983 million) and $1.463 million (2014: $1.926 million) respectively.
During the year the group had a dispute over a joint venture with Wuhan Plaza Management (WPM) in China. The agreement expired in December 2013, and mandatory dissolution is still in progress. Meanwhile, the group has claimed damages against the Wuhan Department Store Group for unilaterally terminating a 20-year lease agreement in January 2014, and arranging for a related company to use the property.
The group is no longer engaged in the property management and agency business in Wuhan.
Meanwhile, rental income from investment properties in Beijing earned the group about $3.383 million, a 24 per cent increase on the previous year’s $2.738 million. It also recorded fair value gains of about $2.895 million ($6.61 million the previous year) following a revaluation of the investment properties. This resulted in a profit of about $3.435 million, a decrease of 41 per cent from 2014.
As well as its property interests, the group is involved in other sectors including construction materials and mining.