HKR International (480) H2 2024 earnings summary

Executive summary

• Revenue surged 132.7% year-over-year to HK$3,940.7 million, mainly due to revenue recognition from the Starlight One project in Jiaxing, China.

• Underlying profit (excluding non-recurring items) rose 35.3% to HK$172.6 million, but the Group reported a net loss attributable to owners of HK$468.0 million due to fair value losses and asset impairments.

• Net asset value per share decreased to HK$15.7 from HK$16.4, and no final dividend was proposed for the year.

Financial highlights

• Revenue: HK$3,940.7 million (up 132.7% YoY).

• Net loss attributable to owners: HK$468.0 million (vs. profit of HK$455.6 million last year).

• Underlying profit: HK$172.6 million (up 35.3% YoY, excluding non-recurring items).

• Total assets: HK$41,824.7 million; total liabilities: HK$15,677.8 million.

• Net asset value per share: HK$15.7.

• Gearing ratio: 38.6% (vs. 22.0% last year).

Outlook and guidance

• The Group expects continued global economic uncertainty due to geopolitical tensions and monetary tightening.

• Cost control, project reprioritization, and operational streamlining have been implemented to maintain competitiveness.

• The Group remains cautiously optimistic, focusing on property and hospitality investments and maintaining a reputable market position.