Far East Consortium (35) H2 2026 earnings summary

Executive summary

• Adjusted revenue for FY 2026 was HK$10.0 billion, with adjusted cash profit at HK$109 million and property development revenue at HK$6.4 billion; hotel segment revenue rose 14.6% to HK$2.4 billion, while car park and gaming revenues were HK$666 million and HK$448 million, respectively.

• The group accelerated project completions, pursued inventory sales, and divested non-core assets to optimize cash flow and strengthen its financial position.

• Significant deleveraging achieved, reducing total debt by HK$8.8 billion over three years, bringing the gearing ratio down to 63%.

• No dividend was declared for FY 2026, with priority given to reducing bank loans and further lowering gearing.

• Net loss attributable to shareholders was HK$1,211 million, impacted by impairment losses, JV/associate losses, fair value decreases, and FX loss, partially offset by asset disposal gains.

Financial highlights

• Adjusted revenue dropped 6.5% year-over-year to HK$10.0 billion; reported revenue was HK$6.6 billion, down 31%.

• Adjusted gross profit margin improved to 37.0% from 31.8% year-over-year.

• Adjusted cash profit was HK$109 million, down from HK$266 million the previous year.

• Finance costs declined as average interest rates dropped from 6.12% to 4.87%; finance costs reduced by 19.3% to HK$835 million.

• Net loss attributable to shareholders narrowed to HK$1,211 million from HK$1,275 million.

Outlook and guidance

• Gearing ratio expected to further improve as asset disposals and project completions continue.

• Substantial development pipeline of HK$58.8 billion and HK$8.4 billion in pre-sales and contracted sales support future growth.

• Hotel division expects continued growth with new openings in Perth, Brisbane, and Fiji; four hotels in the pipeline.

• Car park business to continue asset-light transition and phase out underperforming contracts.

• Gaming segment to benefit from operational improvements, QWB Project restructuring, and new casino openings.