Hopson Development (0754) H2 2025 earnings summary

Executive summary

• FY2025 revenue was HK$17,851m, down 53% YoY; attributable loss was HK$11,741m versus profit of HK$120m, while underlying profit fell 61% to HK$1,207m.

• Basic and diluted EPS was a loss of HK$3.10 versus earnings of HK$0.03 in 2024.

Financial highlights

• Gross profit declined to HK$6,158m from HK$9,558m, while gross margin rose to 35% from 25%, reflecting a higher share of commercial property rent and hotel income.

• Loss before tax was HK$11,882m versus profit before tax of HK$2,806m; total loss for the year was HK$12,674m versus profit of HK$1,103m.

• Selling, marketing and general and administrative costs decreased 10% to HK$2,592m, mainly on lower advertising and promotion costs.

Outlook and guidance

• 2026 priorities include risk control, high-tier city demand, commissioned construction and sales, stronger product and delivery capability, and prudent financial discipline.

• Expected 2026 completions total 2.27m sqm; 774,452 sqm of contracted properties remained undelivered at year-end, with HK$24,925m of proceeds to be recognized as revenue in 2026 and thereafter upon delivery.

• Cash-flow projections rely on lender restructuring or refinancing, property sales and collections, and cost controls; directors expect adequate working capital for 12 months if plans are implemented as anticipated.