Far East Consortium (35) H2 2025 earnings summary

Executive summary

• Adjusted revenue rose 3.8% year-over-year to HK$10.6 billion, with property development leading growth and cumulative unbooked contracted sales of HK$8.9 billion.

• Adjusted cash profit was HK$266 million, down 65.9% year-over-year but improved in the second half.

• Net loss attributable to shareholders was HK$1,275 million, mainly due to high finance costs and significant impairment losses.

• Strategic focus on debt reduction, non-core asset disposals, and accelerated project completions to improve cash flow and lower gearing.

• Hotel revenue increased 2.3% to HK$2,077 million, supported by new openings and ramp-up of recent launches.

Financial highlights

• Adjusted revenue increased 3.8% year-over-year to HK$10.6 billion; reported revenue fell 6.2% to HK$9.6 billion.

• Adjusted cash profit dropped 65.9% to HK$266 million.

• Net loss attributable to shareholders was HK$1,275 million, mainly due to HK$1,034 million in finance costs and HK$777 million in impairments.

• Gross margin improved to 31.8% from 30.9% last year.

• Net debt reduced by HK$1.3 billion year-over-year; total bank loans and notes decreased by 8.6% to HK$25.4 billion.

Outlook and guidance

• Robust development pipeline of HK$61 billion supports growth for the next 6-8 years.

• Attributable presales and unbooked contract sales of HK$8.9 billion provide strong cashflow visibility.

• Major project completions in FY2026 expected to deliver HK$12 billion in attributable GDV.

• Two new hotels in London set to open in the next 12 months, further boosting recurring income.

• Focus remains on early project completion, inventory monetization, and prudent financial management.