Hong Lai Huat Group (CTO) H2 2025 earnings summary

Executive summary

• FY2025 revenue and gross profit improved, with net profit of S$14.75 million versus a S$13.15 million loss in FY2024; a S$16.90 million property reclassification gain was a key driver.

• Cash and bank balances were S$21.57 million at year-end, with minimal gearing; focus remains on monetising completed properties and scaling Cambodian marble operations.

Financial highlights

• Revenue rose to S$2.78 million from S$0.10 million, driven by marble block sales, property rental income and D'Seaview unit sales.

• Gross profit increased to S$1.52 million from S$0.02 million, reflecting improved asset utilisation and operational performance.

• Profit attributable to equity holders was S$14.67 million versus a S$12.93 million loss; improvement included lower development-property write-downs and no discontinued-operations loss.

• Other income rose to S$3.65 million from S$1.21 million; administrative expenses increased S$1.00 million to S$5.85 million, mainly on legal, professional and depreciation costs.

• Finance costs fell to S$0.06 million from S$0.67 million following repayment of bank borrowings.

Outlook and guidance

• FY2026 marble production and sales are expected to scale up progressively as operations stabilise and expand.

• Royal Platinum units will continue to be marketed for sale and lease, with efforts to improve sales conversion and rental take-up.

• Focus remains on monetising completed projects through sales and leasing while gradually unlocking value from existing assets.

• Potential opportunities in Singapore are under evaluation; conditions will be navigated cautiously with attention to operational efficiency.