Far East Consortium (35) investor relations material

Executive summary

• Adjusted revenue rose 3.8% year-over-year to HK$10.6 billion, with property development as the main driver and adjusted cash profit of HK$266 million, despite a net loss of HK$1,275 million due to high finance costs and impairments.

• Property development led growth, with HK$8.9 billion in cumulative unbooked contracted sales and strong presales.

• Hotel revenue increased 2.3% to HK$2,077 million, supported by new openings and ramp-up of recent launches.

• Strategic asset disposals and debt reduction initiatives resulted in a lower adjusted net gearing ratio of 67.6%.

• Ongoing focus on monetising non-core assets and resilience amid volatile global markets.

Financial highlights

• Adjusted revenue up 3.8% to HK$10.6 billion; adjusted cash profit at HK$266 million.

• Net loss attributable to shareholders of HK$1,275 million, mainly due to HK$1,034 million in finance costs and HK$777 million in impairments.

• Gross margin increased to 31.8% from 30.9% year-over-year.

• Net debt reduced by HK$1.3 billion; total bank loans and notes dropped by 8.6% to HK$25.4 billion.

• Dividend per share dropped to 1.0 HK cent from 14.0 HK cents; no final dividend for FY2025.

Outlook and guidance

• Gearing and cash flow expected to improve with continued asset disposals and project completions.

• HK$8.9 billion in presales and contracted sales to be recognized in FY2026; major project completions to deliver HK$12 billion in GDV.

• Recurring cash flow to grow with new hotels stabilising and two new hotels opening in FY2026.

• Car park and gaming businesses to focus on asset-light models and operational improvements.

• Conservative approach to new land acquisitions; current land bank sufficient for 3-4 years.