Lai Sun Development Company (488) H1 2026 earnings summary

Executive summary

• Turnover for the six months ended 31 January 2026 was HK$2,583.5 million, up 1.4% year-over-year, driven by property development sales and F&B operations, but offset by declines in rental and hotel income.

• Net loss attributable to owners was HK$1,166.5 million, significantly higher than the HK$117.8 million loss in the prior year, mainly due to property write-downs, fair value and impairment losses.

• Adjusted EBITDA was HK$379.1 million, down 23.3% year-over-year, reflecting lower profitability from property disposals and impairments.

• Adjusted net loss (excluding fair value and non-recurring items) was HK$400.7 million, slightly improved from HK$411.8 million last year.

• Cost engineering and refinancing initiatives improved liquidity and reduced finance costs.

Financial highlights

• Gross profit fell 30.4% to HK$656.2 million due to property write-downs and lower margins.

• Administrative and operating expenses decreased by 12.9% and 9.1% respectively, reflecting cost control.

• Finance costs dropped 13.4% to HK$669.1 million.

• Basic and diluted loss per share was HK$0.803 (2025: HK$0.081).

• Equity attributable to owners stood at HK$22,314.1 million; net asset value per share was HK$15.354.

Outlook and guidance

• The group expects continued uncertainty in 2026 due to global geopolitical conflicts and commercial real estate challenges in Hong Kong and Mainland China.

• Plans to launch new residential sales in Hong Kong and pursue further asset disposals to improve liquidity and deleverage.

• Ongoing focus on cost control, refinancing, and maintaining high occupancy in rental and hotel portfolios.

• New developments and accommodation projects in Hengqin to capture growing demand.