HKR International (480) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 was HK$852.5 million, down 73% year-over-year due to a lack of new property completions and a high base from the prior period's Starlight One project in Jiaxing.

• Loss attributable to owners was HK$474.3 million, compared to a profit of HK$117.7 million in the prior year, impacted by unrealised fair value losses and asset impairment provisions.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$852.5 million (2023: HK$3,157.1 million).

• Gross profit was HK$299.4 million, down from HK$1,110.7 million year-over-year.

• Net unrealised losses on fair value change of investment properties totaled HK$400.5 million.

• Non-recurring asset impairment provisions amounted to HK$127.9 million.

• Basic loss per share: HK(31.9) cents (2023: earnings of HK7.9 cents).

Outlook and guidance

• Hong Kong property market showed signs of stabilisation after interest rate cuts, but recovery remains uncertain due to macroeconomic headwinds.

• Mainland China property market saw modest recovery in key cities, but sector challenges persist.

• The group will maintain a prudent, value-driven approach and robust risk management to navigate ongoing volatility.

• The economic environment remains challenging due to geopolitical tensions, interest rate hikes, and inflationary pressures.