Due to serious losses of the company's business in North America, its 1H 2008 net profit decreased by USD 3.173 bln to USD 7.722 bln, representing a 29% YOY decrease. In addition, the company twice paid a dividend of USD 0.18 for each common share held in 2008. The total distributed dividends increased by 6% YOY.

Ge Lin, Chairman of the company, said that the company still faces some difficulties in the short term. Its stock price closed at HKD 129.40 on 4 Aug 2008. Ge explained that, as the financial market went through its most challenging period in the first half of 2008, the company could not avoid similar challenges and added that the company's pretax profit was USD 10.2 bln, a 28% YOY slide.

As of the end of June 2008, the company’s losses in North America totaled USD 2.893 bln, 23% more than that of the end of 2007. However, the company’s total revenue increased by 3% YOY, and provisions for loan loss increased by 58% YOY but decreased by 8% when compared with that of the second half of 2007.

It is also known that net profit of industrial and commercial business, one of the company's core businesses, increased by 35% to USD 4.6 bln in 1H 2008.

According to the company's CEO, Ji Qin, it has made provisions for goodwill write-downs of USD 527 mln in personal financial services in North America.

Though the company's loan business in mainland China recently experienced a small shrinkage, it will continue to benefit from trade between Hong Kong and mainland China.


Source: Securities Times

Date: 5 Aug 2008

CN01/MR/LZ/BT/KM