Lai Fung Holdings (1125) investor relations material

Executive summary

• Turnover rose 43.1% year-over-year to HK$927.3 million, driven by the sale of an accommodation tower in Hengqin Novotown Phase II, despite a challenging operating environment and lower rental and hotel income.

• Gross profit fell 73.1% to HK$88.8 million due to losses on property sales and write-downs in Hengqin Novotown Phase II.

• Net loss attributable to owners widened to HK$384.0 million from HK$164.0 million year-over-year, mainly from property sale losses and asset write-downs.

• Adjusted EBITDA dropped 46.8% to HK$131.5 million, reflecting non-recurring losses.

Financial highlights

• Rental income decreased 2.6% year-over-year to HK$499.9 million; hotel and serviced apartment revenue fell 4.2% to HK$140.7 million.

• Sale of properties surged 224.2% to HK$425.4 million, mainly from Hengqin Novotown Phase II.

• Adjusted net loss (excluding non-cash and non-recurring items) was HK$223.0 million, up from HK$160.5 million.

• Net asset value per share rose slightly to HK$36.63.

Outlook and guidance

• The group will focus on asset disposals, targeting HK$2,000 million over two years, with HK$1,000 million achieved to date.

• Market conditions remain challenging due to global geopolitical risks and a weak Chinese property market, but supportive policies and urban renewal initiatives are expected.

• The group will continue to manage liquidity through asset sales, refinancing, and cost controls.