Lai Sun Development Company (488) investor relations material

Executive summary

• Delivered stable performance amid an uncertain environment, with resilient rental income and steady hotel revenue despite declines in property sales in China.

• Net loss attributable to owners narrowed to HK$117.8 million from HK$1,853.0 million year-over-year, driven by improved fair value changes, joint venture gains, subsidiary disposal, and reduced finance costs.

• Turnover declined 16.2% year-over-year to HK$2,547.6 million, mainly due to lower property sales as Zhongshan Palm Spring neared final sale phase, partially offset by higher sales in Hong Kong projects.

• Focused on asset disposals, refinancing, and cost control to enhance financial position and operational efficiency.

• No interim dividend declared for the period.

Financial highlights

• LSD revenue down 16% to HK$2,548m; net loss reduced to HK$118m from HK$1,853m year-over-year.

• Adjusted EBITDA for LSD down 5% to HK$494m; for LFH down 53% to HK$247m.

• Gross profit was HK$942.7 million, down from HK$1,071.6 million year-over-year.

• Rental income was HK$621.0 million, down 0.5% year-over-year, with high occupancy rates maintained in Hong Kong and Chinese Mainland.

• Hotel operation income rose 3.9% to HK$647.3 million, mainly from Caravelle Hotel.

Outlook and guidance

• Targeting asset disposals of HK$8bn over the next two years, including HK$6bn at LSD and HK$2bn at LFH, to strengthen balance sheet.

• Ongoing discussions and commitments for major refinancing projects to secure liquidity.

• Anticipates growth from Hengqin Novotown Phase II, with new accommodation and office towers under construction.

• Cost control and cash recoupment prioritized amid global economic uncertainties and subdued property markets.

• Hong Kong office and retail leasing expected to remain competitive short-term, but medium- to long-term outlook is stabilizing.