Far East Consortium (35) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY2025 declined 18.7% year-over-year to HK$5.2 billion, mainly due to fewer completed and settled residential property developments.

• Adjusted cash profit remained positive at HK$139 million, but net loss attributable to shareholders was HK$770 million, impacted by higher finance costs, impairments, and fair value losses.

• Recurring income businesses (hotel, car park, gaming) showed resilience, with recurring revenue up 2.2% to HK$1.6 billion.

• The Group maintained a focus on deleveraging, cost control, and monetising non-core assets to strengthen its financial position.

• Strong property development pipeline of HK$65.9 billion and cumulative presales and unbooked contracted sales of HK$11.8 billion provide future revenue visibility.

Financial highlights

• Adjusted cash profit dropped 77.5% year-over-year to HK$139 million.

• Net loss attributable to shareholders was HK$770 million for 1H FY2025, compared to a profit of HK$232 million in 1H FY2024.

• Interim dividend per share was HK$0.01, down from HK$0.04 in the prior year.

• Adjusted net asset value per share was HK$10.81 as at 30 September 2024.

• Liquidity position was HK$4.5 billion, with HK$5.4 billion in unencumbered hotel assets and unsold inventory.

Outlook and guidance

• Focus remains on cost control, debt reduction, and monetisation of non-core assets to maintain a healthy balance sheet.

• Active residential development pipeline GDV of HK$65.9 billion supports revenue growth for 6–8 years.

• Several major projects nearing completion are expected to boost cash flow and reduce leverage.

• New hotel openings and asset-light expansion, including Queen's Wharf Brisbane and Dorsett Kai Tak, are expected to contribute to future growth.

• The Group anticipates steady growth in recurring income businesses and is optimistic about demand in hospitality and gaming.