Glorious Property Holdings Ltd. (845), controlled by Chinese billionaire Zhang Zhirong, headed for its biggest drop in two weeks in Hong Kong after saying full-year profit will “significantly” decrease on project delays.
The shares declined 4.4 percent to HK$1.32 as of 10:33 a.m., local time, and headed for their biggest drop since Dec. 11. Glorious Property has lost 2.9 percent this year, compared with a 22 percent gain in the benchmark Hang Seng Index.
The Shanghai-based company alerted investors of the profit warning in a statement to Hong Kong’s stock exchange after the market closed on Dec. 21. It didn’t say which projects are being delayed.
Zhang resigned as chairman of the company in November after an investment company he controlled agreed to pay $14 million to resolve U.S. insider-trading claims, saying he needs “to devote more time to his personal endeavors.” He was replaced by Chief Executive Officer Cheng Lixiong.
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