New Century REIT suffers US$2.5m in H1

The company recorded a US$1.07m loss in the same period last year.

The New Century REIT recorded an RMB16.76m loss, or approximately US$2.5m, for the six months ended 30 June.

This is 139.9% higher than the RMB6.99m (US$1.07m) loss recorded in the same period in 2020.

Revenue from its hotel properties segment dropped by 23% year-on-year, largely due to the disposal of all hotel Properties through the sale of its subsidiary, Spearhead Global Limited.

Its revenue from rental income, with respect to leases of the hotel properties, amounted to RMB64m (US$9.8m), whilst its other rental income stood at RMB8m (US$1.2m).

This is lower than RMB83m (US$12.8m) and RMB10m (US$1.5m), recorded in the same period in 2020.

“Although the COVID-19 pandemic is largely under control in the PRC, the scattered confirmed cases and the prudent prevention and control measures still affected the overall performance of the Hotel Properties,” the Company noted in the report.

In light of this, New Century REIT did not declare any distribution for the six-month period, except for the interim distribution worth HK$2 per unit relating to the disposal and the final distribution of HK$0.0018.

As of 30 June, the group had no borrowings, whilst its total cash and cash equivalents of RMB4m.