Hong Lai Huat Group (CTO) H2 2024 earnings summary

Executive summary

• FY2024 remained difficult amid weak property markets, cost pressures and other write-offs; attributable net loss narrowed to $12.9m from $23.2m in FY2023.

• Disposal of the Cambodia agriculture business redirected focus to property development; disposal consideration was US$37.5m, with US$3.6m still receivable at year-end.

• Priority is consolidation, disciplined cash management and a cautious review of project timelines and demand.

Financial highlights

• Continuing-operations revenue was $102k in FY2024, versus negative $184k in restated FY2023; gross loss was $87k versus gross profit of $81k.

• Continuing-operations loss was $7.9m, compared with $7.6m restated in FY2023; total loss attributable to equity holders was $12.9m versus $23.2m.

• FY2024 included a $6.1m development-property write-down; loss from discontinued operations, net of tax, was $5.3m versus $15.7m in FY2023.

• Total assets fell to $110.6m from $133.3m; total liabilities declined to $5.7m from $22.1m at 31 December 2023.

• Year-end cash and cash equivalents rose to $27.5m from $3.9m; operating cash used was $5.2m, investing cash generated was $39.5m and financing cash used was $8.6m.

Outlook and guidance

• Near-term priorities are consolidation, prudent financial management and sustainable operations; continued volatility and uncertainty are anticipated.

• Project timelines and pipeline plans are being reassessed against market demand; future land development decisions depend on conditions, demand and feasibility.

• The remaining 20% of D'Seaview units are being progressively fitted out for long-term rental or direct sale, depending on market conditions.