Lai Sun Development Company (488) H2 2026 earnings summary

Executive summary

• FY26 turnover rose 3.4% YoY to HK$5,066.7m; gross profit increased 57.4% to HK$1,558.5m, while attributable net loss narrowed to HK$2,396.6m.

• Adjusted net loss, excluding property revaluations and other non-cash and non-recurring items, narrowed to HK$674.5m from HK$823.0m; adjusted EBITDA was HK$814.6m versus HK$870.7m.

Financial highlights

• Turnover growth was led by film and TV program, media and entertainment, and cinema revenue; lower rental income, hotel revenue and Hong Kong property sales partly offset the increase.

• Operating loss widened to HK$1,513.7m from HK$834.9m, as investment-property fair-value losses rose to HK$1,312.3m from HK$457.6m; loss for the year was HK$2,654.6m.

• Gross profit rose to HK$1,558.5m from HK$990.2m, reflecting higher revenue and reversal of a prior-year Hong Kong development-property write-down, partly offset by Hengqin tower losses and property write-downs.

• Basic and diluted loss per share improved to HK$1.649 from HK$1.978; no final or interim dividend was declared.

Outlook and guidance

• New Hong Kong residential launches are planned in the coming financial year; development priorities include Mount Broadcast fitting-out completion in Q1 2027 and construction completion at 1 Kotewall Road in Q1 2028.

• Deep Water Pavilia had 791 of 825 units presold for HK$13.9bn; fitting-out was expected to complete in December 2026. Design work at 116 Waterloo Road is ongoing, with completion expected in Q1 2030.

• Hengqin Novotown Phase II Tower 2 was scheduled to begin operations in November 2026; further accommodation towers are planned for rental, while additional tower disposals remain under consideration.

• Management plans continued refinancing, asset sales, property presales, cost control and restrained capital expenditure to support liquidity and orderly deleveraging.