Minmetals Land (230) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 dropped 60.7% year-over-year to HK$1,976 million, mainly due to a decrease in real estate project scale recognized during the period.

• Net loss narrowed by 44.8% year-over-year to HK$580 million, with loss attributable to equity holders at HK$585 million.

• Core loss attributable to equity holders (excluding non-recurring items) was HK$292 million, up from HK$159 million a year ago.

• The real estate market remained sluggish, with declining sales and investment, and persistent liquidity risks.

Financial highlights

• Gross profit margin increased to 11.3% from 7.5% year-over-year, driven by a higher proportion of high-margin real estate projects.

• Real estate development revenue fell 63.7% to HK$1,743 million, accounting for 88.2% of total revenue.

• Property management revenue rose 11.3% to HK$210 million, with gross margin up to 19.7%.

• Property investment revenue declined 15.7% to HK$22 million, with occupancy rates and gross margin falling.

• Total assets decreased 4.0% to HK$39,372 million as of 30 June 2025.

Outlook and guidance

• The real estate market is expected to remain under pressure, with continued weak sales, liquidity challenges, and slow recovery in market confidence.

• The group aims to improve sales and cash collection, reduce costs, and manage debt risks to enhance sustainability.

• National policies are expected to remain supportive, but market confidence and fundamentals need time to recover.