WHARF HOLDINGS (00004) has released its interim results for the six months ending June 30, 2026, reporting a sharp decline in profitability.

The company posted revenue of HK$5.344 billion, down 6% year-on-year, while operating profit fell 11% to HK$2.354 billion. Profit attributable to shareholders plunged 91% to just HK$48 million, with basic earnings per share at HK$0.02. The board has declared a first interim dividend of HK$0.20 per share, along with a special interim dividend of HK$0.20 per share to mark the company's 140th anniversary.

The first half of 2026 remained challenging, with the Middle East conflict adding further complexity. Amid global turbulence, Hong Kong's stock market saw active trading and a surge in IPO activity, reinforcing its position as a reliable haven for investment capital. The residential property market showed signs of recovery, with improved buyer sentiment leading to substantial gains in both prices and transaction volumes. The group has a range of residential projects ready for sale to capitalize on this trend.

Port operations continue to face intense regional competition, but the group is actively exploring new business opportunities, expected to launch in the second half of the year. In mainland China, market sentiment remains weak due to the struggling real estate sector, though first-tier cities are showing early signs of stabilization. Shifting consumption patterns and intensifying competition continue to pressure the group's various businesses. The strengthening of the renminbi against the Hong Kong dollar has provided some buffer in reported figures. Despite these external factors, the group maintains a prudent financial approach, preserving a net cash position and a solid capital structure.