Lai Fung Holdings (1125) investor relations material

Executive summary

• FY2026 turnover rose 16.8% to HK$1,508.3m, driven by property sales; rental and hotel income remained broadly stable at HK$999.6m. Net loss attributable to owners widened to HK$591.6m.

• Adjusted EBITDA fell 35.0% to HK$270.7m, reflecting the loss on the T1 accommodation tower sale; property write-downs also weighed on reported results.

Financial highlights

• Turnover increased 16.8% YoY to HK$1,508.3m; excluding currency translation, RMB-denominated turnover rose 12.6%.

• Gross profit declined 32.7% to HK$353.4m, mainly due to the T1 sale loss and write-downs of T3 development and completed properties.

• Operating profit was HK$24.7m versus HK$227.1m; finance costs were HK$512.0m versus HK$521.9m.

• Net loss attributable to owners was HK$591.6m versus HK$419.4m; basic and diluted loss per share was HK$1.787 versus HK$1.267.

• Adjusted net loss, excluding property revaluations and other non-cash/non-recurring items, was HK$424.8m versus HK$349.0m; adjusted loss per share was HK$1.283 versus HK$1.054.

Outlook and guidance

• T3 sale revenue of HK$374.7m is expected to be recognised in FY2027; contracted but unrecognised sales totalled HK$560.3m at 31 July 2026.

• Novotown Phase II office tower two is scheduled to begin operating in November 2026; towers four to eleven received approval for rental accommodation development.

• Prior asset-disposal target is HK$2,000m over two years; aggregate gross proceeds reached approximately HK$1,150m, with further asset sales under discussion.

• Management plans to protect occupancy and recurring rental income, control costs and capital expenditure, sell selected assets, and actively manage debt maturities.