Pacific Century Premium Developments (432) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 46% to HK$822 million; operating loss narrowed 59% to HK$89 million, while equity-holder loss was HK$466 million.

• Basic loss per share improved to HK22.89 cents from HK29.34 cents; no final dividend was recommended.

Financial highlights

• Revenue was HK$822 million versus HK$561 million; gross profit increased to HK$547 million from HK$333 million.

• Gross margin was 67% versus 59%; G&A expenses were HK$665 million, up 0.4% from HK$662 million.

• Operating loss narrowed to HK$89 million from HK$215 million; net loss after tax narrowed to HK$466 million from HK$598 million.

• Finance costs decreased to HK$332 million from HK$343 million; income tax expense increased to HK$66 million from HK$54 million.

Outlook and guidance

• 2024 outlook is cautiously optimistic, with global growth expected to slow, inflation to ease and potential rate cuts supporting a gradual recovery.

• International tourism is expected to continue recovering toward pre-pandemic levels; growth in 2024 is expected to be slower than in 2023.

• Planned sales and marketing initiatives target international tenants, travellers and high-net-worth buyers; cost and revenue strategies will be prepared for unforeseen conditions.