Hopson Development Holdings (0754) investor relations material

Executive summary

• Turnover for the six months ended 30 June 2025 was HK$6,471 million, down 53% year-over-year.

• Loss attributable to equity holders was HK$1,732 million, compared to a profit of HK$1,073 million in the prior year.

• Basic and diluted loss per share was HK$0.46.

• The Chinese real estate market showed signs of stabilization but overall sentiment remained weak.

Financial highlights

• Gross profit was HK$2,552 million, with a margin of 39% (up from 27% last year).

• Fair value loss on investment properties was HK$382 million (2024: gain of HK$525 million).

• Other net losses totaled HK$1,804 million, mainly from a HK$1,810 million loss on disposal of an associate.

• Asset impairment provisions reached HK$623 million, up from HK$101 million last year.

• Finance costs decreased 24% to HK$2,058 million, with an effective interest rate of 5.4%.

• Total tax was HK$415 million, down from HK$987 million.

Outlook and guidance

• The real estate industry is at a turning point, with policy focus shifting to supply quality and risk resolution.

• Year-on-year sales decline may increase slightly in the second half, but high-quality projects in core cities are expected to support recovery.

• The company will continue prudent financial management, focus on core capabilities, and explore new development models.