Lai Sun Development Company (488) H1 2026 earnings summary

Executive summary

• Group demonstrated resilience amid challenging market conditions, with stable rental and hotel operations but widened net losses across major segments.

• 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 lower rental and hotel income.

• Net loss attributable to owners was HK$1,166.5 million, compared to HK$117.8 million loss last year, mainly from property write-downs, fair value and impairment losses.

• Property sales in Hong Kong and China largely concluded as guided, supporting cash flow.

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

Financial highlights

• LSD revenue marginally down 1% year-over-year to HK$2,584m; net loss widened to HK$1,166m from HK$118m.

• Property development and sales revenue rose 8.2% to HK$667.8 million; property investment revenue dropped 7.7% to HK$573.1 million.

• Hotel operation revenue decreased 1.5% to HK$637.8 million; restaurant and F&B sales grew 7.4% to HK$234.0 million.

• Adjusted EBITDA was HK$379.1 million, down 23.3% year-over-year.

• Group-wide rental income remained resilient, with total GFA under management exceeding 5 million sq.ft.

Outlook and guidance

• Positive momentum in property disposals expected to continue, with targets likely to be met ahead of schedule.

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

• Plans to accelerate asset disposals and maintain proactive liquidity management.

• New residential launches in Hong Kong are planned for 2026; further en-bloc sales in Hengqin are targeted.

• Ongoing focus on cost control and further refinancing to strengthen financial position.