Lai Fung Holdings (1125) H2 2024 earnings summary

Executive summary

• Net loss attributable to owners improved to HK$267.7 million from HK$584.7 million year-over-year, driven by fair value gains on investment properties, reduced operating and administrative expenses, and higher rental and property sales income.

• Turnover rose 21.8% to HK$2,192.8 million, with rental income up 11.3% and property sales up 33.3% year-over-year.

• Adjusted EBITDA (excluding fair value changes and non-recurring items) increased 35.7% to HK$782.0 million.

• No final dividend was declared for the year.

Financial highlights

• Gross profit slightly decreased by 1.3% to HK$890.0 million.

• Net loss per share was HK$0.809, improved from HK$1.766 last year.

• Adjusted net loss (excluding non-cash and non-recurring items) was HK$332.0 million, down from HK$387.2 million.

• Administrative expenses fell 26.4% and other operating expenses dropped 39.2% year-over-year.

• Total borrowings reduced by 7.2% to HK$9,853.2 million.

Outlook and guidance

• The group remains cautiously optimistic about long-term prospects in the Chinese Mainland, especially the Greater Bay Area, despite ongoing economic and property sector challenges.

• Central government measures to stabilize the property market are expected to provide support, but the outlook remains uncertain.