(Yicai) Aug. 15 -- CK Asset Holdings, the real estate unit of Hong Kong tycoon Li Ka-shing’s business empire, will continue selling homes at discounted prices to offload inventory, despite a 27 percent drop in first-half profit caused by lower investment property valuations.

Revenue climbed 15 percent to HKD25.4 billion (USD3.2 billion) in the first six months of the year from a year earlier, while profit attributable to shareholders fell to HKD6.3 billion (USD805.2 million), the developer said in a bourse filing yesterday.

Billionaire Li's conglomerate, which spans port operations, retail, and telecommunications, is adjusting its strategy amid global economic headwinds. Executives said CK Asset remains focused on clearing stock and maintaining pricing flexibility.

The discount strategy appears effective. Property sales surged nearly 59 percent year on year to HKD7.4 billion, with the Chinese mainland accounting for over half at HKD3.8 billion -- more than double the year-ago figure.

Hong Kong’s low-interest-rate environment has fueled a recovery in new home transactions, particularly for small to medium-sized units, George Ma, general manager of enterprise business development, said during a performance briefing. But due to high overall supply, home prices remain under pressure, he added.

Patrick Man, general manager of accounting, said upcoming projects in Hong Kong, Singapore, and Beijing will contribute to second-half profits, though losses from the Blue Coast project will partly offset gains. Blue Coast, a premium residential project in Hong Kong’s Wong Chuk Hang district, is being sold at discounted rates.

CK Asset has deepened its discounting strategy since early last year. Units at Blue Coast, launched in 2024, are priced 30 percent below comparable second-hand properties and 22 percent below cost.

“The profit contribution from the property development business is not expected to be significant in the coming years,” Man said when asked about future earnings.

Editor: Emmi Laine