Paliburg (617) H2 2024 earnings summary

Executive summary

• Revenue declined 2.7% year-over-year to HK$2,731.0 million, with gross profit down 16.1% to HK$943.7 million.

• Consolidated loss attributable to shareholders widened to HK$1,643.4 million from HK$1,042.0 million in 2023, mainly due to fair value and impairment losses, high finance costs, and depreciation charges.

• Property sales progress was slower than expected amid sluggish real estate markets in Hong Kong and China, while hotel operations remained steady.

• No dividend was declared for the year.

Financial highlights

• Operating loss before depreciation, finance costs, and tax was HK$376.4 million, compared to a profit of HK$277.8 million last year.

• Basic loss per share increased to HK$(1.55) from HK$(1.01) year-over-year.

• Net asset value per share dropped to HK$7.61 (book) and HK$13.12 (adjusted for hotel market value) as of 31 December 2024.

• Net cash flows from operating activities were HK$362.6 million, down from HK$623.9 million in 2023.

• Gearing ratio rose to 50.8% (book) and 38.9% (adjusted) as of year-end.

Outlook and guidance

• Management remains optimistic about Hong Kong’s economic prospects despite ongoing geopolitical and trade uncertainties.

• Plans are underway to monetize asset portfolios in Hong Kong and China to reinforce financial strength.