Century City International (355) H1 2025 earnings summary

Executive summary

• Consolidated loss attributable to shareholders was HK$382.7 million for the six months ended 30 June 2025, improving from HK$422.6 million in the same period last year.

• Revenue declined 14.7% year-over-year to HK$1,185.5 million, with gross profit down to HK$403.3 million, mainly due to weaker property segment revenues.

• Hotel business performed steadily, with increased income compared to the prior year, offsetting some property segment contraction.

• Operating loss before depreciation, finance costs, and tax was HK$14.5 million, compared to a profit of HK$87.3 million last year.

• Depreciation charges on hotel properties (HK$335.4 million) had no direct cash flow impact but adversely affected reported results.

Financial highlights

• Revenue for the period was HK$1,185.5 million, down from HK$1,390.1 million year-over-year.

• Net cash flows from operating activities were HK$162.5 million, up from HK$20.8 million in the prior year.

• Gearing ratio increased to 52.0% (from 49.7% at year-end 2024), with net borrowings of HK$18,362.7 million.

• Adjusted net asset value per share, if hotel properties were stated at market value, would be HK$2.91.

• No interim dividend declared for the period.

Outlook and guidance

• Management expects a challenging business environment due to macroeconomic and geopolitical uncertainties.

• Strategic deleveraging and asset disposals are planned to reinforce financial strength and reduce indebtedness.

• No immediate plans for major acquisitions or capital asset purchases beyond current projects.

• Hong Kong's integration with national development strategies and potential interest rate cuts may provide future support.

• The group remains optimistic about long-term prospects, especially with supportive policies in China and asset sales in progress.