Far East Consortium (35) H2 2026 earnings summary

Executive summary

• Revenue declined 31.0% year-over-year to HK$6.6 billion, mainly due to fewer property development completions and settlements.

• Net loss attributable to shareholders was HK$1,211 million, impacted by HK$1.2 billion in impairment losses, JV/associate losses, fair value decreases, and FX loss, partially offset by gains from asset disposals and a provisional gain from DBC acquisition.

• Adjusted cash profit was HK$109 million; loss per share decreased 5.0% to HK39.6 cents.

• No final dividend was recommended for FY2026.

Financial highlights

• Adjusted revenue (including JV contributions) fell 6.5% to HK$10.0 billion.

• Adjusted gross profit margin improved to 37.0% from 31.8% year-over-year.

• Adjusted net gearing ratio improved to 63.0% from 67.6% year-over-year.

• Net debt reduced by 7.9% to HK$19.8 billion; total bank loans, notes, and bonds down 7.5% to HK$23.5 billion.

• Adjusted net asset value per share was HK$9.20.

Outlook and guidance

• Focus remains on deleveraging, capital recycling, and disciplined capital allocation.

• Significant cash flow visibility from scheduled handovers of major projects over the next 24 months.

• Active residential pipeline GDV of HK$58.8 billion supports revenue growth for 6–8 years.

• Asset-light transition in hospitality and car park segments to underpin recurring income growth.

• Continued prioritization of debt reduction and liquidity improvement.