Kerry Properties (683) investor relations material

Executive summary

• Combined revenue surged 65% year-over-year to HK$9,954 million, driven by strong property sales in Hong Kong and the Mainland, especially from the Jinling project in Shanghai and Mont Verra and La Montagne in Hong Kong.

• Profit attributable to shareholders fell 22% year-over-year to HK$612 million, with underlying profit down 30% to HK$978 million due to lower gross margins, reduced rental revenue, higher taxation, and increased costs.

• EPS was HK$0.42 (down 22%) and adjusted EPS was HK$0.67 (down 30%).

• Interim dividend maintained at HK$0.40 per share.

• Contracted sales more than doubled to HK$16,186 million, led by the Shanghai Jinling project and with Mainland projects contributing 66% of the total.

Financial highlights

• Gross margin dropped to 27% from 45% year-over-year, reflecting a different product mix and lower rental revenue.

• Gearing ratio improved to 38.4% from 41.5% at year-end 2024.

• Net debt: HK$45,409 million; total equity: HK$118,173 million.

• Net finance costs increased to HK$331 million due to lower capitalised finance costs.

• Available financial resources: HK$49,898 million, covering 84% of total borrowings.

Outlook and guidance

• Management maintains a positive long-term view on Hong Kong and Mainland economies but expects near-term headwinds and market volatility.

• Focus remains on financial discipline, asset enhancement, sustainability initiatives, and prudent landbanking.