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Hang Lung Group (10) investor relations material
Hang Lung Group H2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue declined 11% year-over-year, mainly due to an 83% drop in property sales, while leasing and hotels remained resilient and underlying profit rose 3%.
Strategic shift to a capital-efficient growth model, focusing on core cities and major retail expansions in Shanghai, Hangzhou, Wuxi, and Kunming.
Mainland China retail segment achieved 1% revenue growth and 4% tenant sales growth, with record-high Q4 sales and strong member engagement.
Office segment in Mainland China declined by 7-8% year-on-year, with occupancy rates ranging from 65% to 96% and continued headwinds.
CapEx cycle has peaked, with significant reductions planned for 2026 and 2027.
Financial highlights
Operating profit increased by 1% to HK$6,527–6,836 million, and underlying net profit rose 3% to HK$2,407–3,202 million.
Property leasing revenue fell 1–2%, while hotel revenue surged 57% year-on-year.
Net gearing ratio improved to 30.9–32.7% by year-end, with net debt stable at HK$47.3 billion.
Interest cover improved to 3.1–3.2x, and average borrowing cost fell to 3.8%.
Record-high proceeds from property disposals at HK$1.3–1.6 billion, highest in eight years.
Outlook and guidance
Retail sales in Mainland China expected to see single-digit growth in 2026, with key expansion projects as growth drivers.
Office market headwinds in Mainland China anticipated to persist for 18–24 months, with subdued demand and elevated vacancies.
CapEx guidance: HK$3.1 billion for 2026, HK$2.6 billion for 2027, with further reductions expected.
Property sales strategy will focus on prudent pricing and phased releases as market conditions allow.
Emphasis on sustainability, with 70–80% of Mainland portfolio’s electricity demand met by renewables.
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- CMBT
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Annual revenue up 5% to $5.50B; Adjusted EBITDA and EPS both saw double-digit growth. - QLINEA
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Net profit surged 56% YoY, with accelerated capital repatriation and robust capital ratios.
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