Financial Data and Key Metrics Changes - Adjusted revenue reached HKD 4.9 billion, with cash profits of HKD 203 million, primarily driven by property development revenue of HKD 3.2 billion [3][5] - Net loss attributable to shareholders was HKD 988 million, influenced by non-cash adjustments including impairment losses totaling HKD 281 million [5][6] - The adjusted net gearing ratio improved to 64.9%, down 2.7 points compared to the end of March [6][13] Business Line Data and Key Metrics Changes - Property development revenue decreased to HKD 3.2 billion from HKD 3.6 billion year-on-year, but profit margin increased from 31.3% to 34.9% [25][26] - Hotel revenue increased by 10% to nearly HKD 1 billion, with significant contributions from Dorsett Kai Tak [4][35] - Car park revenue decreased by 10% to HKD 343 million, while gaming revenue increased by 11% to HKD 2,018 million [43][45] Market Data and Key Metrics Changes - The company reported strong sales momentum in Manchester, with prices increasing from GBP 380 to over GBP 580 per sq ft, reflecting over 50% growth [27] - In Hong Kong, the Pavilion Forest project has seen strong sales, with over 700 units sold out of 1,300 [32] - The hotel market in Hong Kong is showing improvement, with occupancy rates trending upwards [35] Company Strategy and Development Direction - The company aims to accelerate project completions to optimize cash flow and reduce debt levels, maintaining a robust development pipeline of approximately HKD 62 billion [25][28] - Focus on divesting non-core assets and transitioning towards an asset-light business model [49] - The company is restructuring investments in Queensland and expects to increase its stake in the Queens Wharf Brisbane project to 50% [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the Hong Kong property market stabilization and anticipated no further material impairments [51][52] - The company expects to further reduce its gearing ratio and improve cash flow visibility from pre-sales and completed projects [47][48] - Future hotel revenue is projected to grow with the stabilization of new hotels and ongoing operational improvements [49] Other Important Information - The company has entered into agreements to dispose of non-core assets, including a car park in Chatswood, Sydney, for AUD 3.7 million [8][43] - The company is actively involved in community support efforts following a recent fire incident in Hong Kong [1][24] Q&A Session Summary Question: Any plans for the Yaru project and potential impairments? - Management hopes for no further impairments, citing recent sales performance in the Pavilion Forest project [51] Question: What is the company's strategy regarding perpetual bonds? - The priority is on reducing bank loans, with a focus on leveraging the HKD 61 billion development pipeline [59]

Financial Data and Key Metrics Changes - Adjusted revenue reached HKD 4.9 billion, with cash profits of HKD 203 million, despite a net loss attributable to shareholders of HKD 988 million due to impairment losses [4][6][12] - The adjusted gross profit margin increased by 3.6 percentage points to 34.8%, driven mainly by property sales [12][13] - The net gearing ratio improved to 64.9%, down 2.7 percentage points compared to the end of March [7][14] Business Line Data and Key Metrics Changes - Property development revenue was HKD 3.2 billion, with a profit margin increase from 31.3% to 36.8% [25][26] - Hotel revenue increased by 9.5% to nearly HKD 1 billion, with occupancy rates improving significantly [36] - Car park revenue decreased by 10% to HKD 343 million, attributed to holding costs [45] - Gaming revenue increased by 11% to HKD 2,018 million, with an adjusted gross profit margin of 42% [46] Market Data and Key Metrics Changes - The company reported strong sales momentum in Manchester, with prices increasing over 50% in recent years [27] - In London, the Aspen at Consort Place project is expected to benefit from a housing supply shortage [29] - The Melbourne market showed strong performance with Westside Place selling out 1,400 units [31] Company Strategy and Development Direction - The company aims to accelerate project completions to optimize cash flow and reduce debt levels, maintaining a robust development pipeline of approximately HKD 62 billion [25][28] - There is a focus on divesting non-core assets and transitioning towards an asset-light business model [52] - The company plans to unlock hotel revaluation surplus and continue to enhance its hotel portfolio [9][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the Hong Kong property market and the potential for no further material impairments [55][56] - The company is focused on reducing bank loans and maintaining a healthy financial position, with plans to complete ongoing projects [62][63] - Future cash flow visibility is strong, with HKD 9.3 billion in pre-sales and contracted sales expected to contribute to revenue [51] Other Important Information - The company has entered into agreements to dispose of certain non-core assets, including a car park in Sydney for AUD 3.7 million [9][45] - The company is actively involved in community support following a recent tragedy, demonstrating its commitment to social responsibility [2][24] Q&A Session Summary Question: Is there a risk of further impairment for the Sai Ying Pun project? - Management does not foresee further impairment, citing recent market stabilization and strong sales performance in the Pavilion Forest project [55][56] Question: What is the company's strategy regarding sustainability? - The company is converting loans to sustainability-focused financing and emphasizes its commitment to social impact through various initiatives [57][58] Question: What are the plans for the perpetual bonds? - The priority is on reducing bank loans, with no immediate rush to address the high coupon rates of perpetual bonds [62][63]

Core Insights - Far East Development (00035) reported a mid-term performance for the six months ending September 30, 2025, with revenue of approximately HKD 3.756 billion, a year-on-year decrease of 27.38% [1] - The company recorded a loss attributable to shareholders of approximately HKD 988 million, an increase of 28.38% year-on-year [1] - Basic loss per share was reported at HKD 0.323 [1] Financial Performance - Revenue decreased to HKD 3.756 billion, reflecting a significant decline compared to the previous year [1] - The loss attributable to shareholders expanded to HKD 988 million, indicating worsening financial performance [1] - Basic loss per share was calculated at HKD 0.323, highlighting the impact of the losses on shareholder value [1] Contributing Factors - The increase in loss was primarily due to impairment losses affecting overall profitability during the first half of the 2026 fiscal year [1] - This negative impact was partially offset by growth in recurring income, a decrease in financing costs, and gains from the sale of BC Invest equity [1]

Core Viewpoint - Far East Development (00035) reported a significant decline in its interim performance for the six months ending September 30, 2025, with a revenue of approximately HKD 3.756 billion, representing a year-on-year decrease of 27.38% [1] Financial Performance - The company recorded a loss attributable to shareholders of approximately HKD 988 million, which is an increase of 28.38% compared to the previous year [1] - Basic loss per share was reported at HKD 0.323 [1] Contributing Factors - The increase in loss attributable to shareholders was primarily due to overall profitability being adversely affected by impairment losses during the first half of the fiscal year 2026 [1] - This negative impact was partially offset by growth in recurring income, a decrease in financing costs, and gains from the sale of BC Invest equity [1]

Core Viewpoint - Far East Development (00035.HK) reported a 5.9% decrease in adjusted earnings for the first half of the fiscal year 2026, amounting to HKD 4.94 billion, primarily impacted by impairment losses, despite some offset from growth in recurring income, reduced financing costs, and gains from the sale of BCInvest shares [1] Financial Performance - The company recorded a net loss attributable to shareholders of HKD 988 million for the first half of fiscal year 2026 [1] - Earnings per share (EPS) decreased by 18.3% to HKD 0.323 [1] - The board decided not to declare an interim dividend for the first half of fiscal year 2026, compared to an interim dividend of HKD 0.01 per share in the first half of fiscal year 2025 [1]

Financial Performance - For the first half of the fiscal year 2026, the group's revenue decreased by 27.4% to approximately HKD 3,800,000,000 compared to the same period in fiscal year 2025[2] - Adjusted revenue decreased by 5.9% to HKD 4,940,000,000 in the first half of fiscal year 2026, impacted by impairment losses[8] - The company recorded a net loss attributable to shareholders of HKD 988,000,000 in the first half of fiscal year 2026, influenced by various impairment losses totaling approximately HKD 921,000,000[8] - The company reported a loss of HKD 804.16 million for the period, compared to a loss of HKD 664.10 million in the previous year[18] - Basic loss per share was HKD 32.3 cents, compared to HKD 27.3 cents for the same period last year[16] Revenue Breakdown - Adjusted revenue from property development for the first half of fiscal year 2026 decreased by 10.3% to approximately HKD 3,227,000,000, primarily due to a reduction in completed residential projects[3] - Revenue from property development for the first half of fiscal year 2026 was approximately HKD 2,000,000,000, a decline of 42.0% compared to the same period in fiscal year 2025[59] - Revenue from the hotel business for the first half of fiscal year 2026 reached approximately HKD 1,071,000,000, an increase of 9.6% year-on-year[60] - Revenue from the parking and facility management business for the first half of fiscal year 2026 was approximately HKD 343,000,000, a decrease of 9.7% compared to the first half of fiscal year 2025[61] - The gaming business revenue increased by 11.4% to approximately HKD 218,000,000 in the first half of fiscal year 2026[62] Financial Stability - The net debt decreased by HKD 1,246,000,000 to HKD 20,247,000,000, indicating enhanced financial stability[2] - The adjusted net asset liability ratio decreased to 64.9%, further strengthening the group's financial position[2] - The adjusted net debt-to-equity ratio decreased to 64.9%, reflecting improved capital management and financial discipline[9] - As of September 30, 2025, total bank loans, notes, and bonds decreased by approximately HKD 1,426,000,000 or 5.6% to HKD 23,945,000,000, indicating strict financial management[4] - The company's total liabilities amounted to HKD 23,945 million, down from HKD 25,371 million as of March 31, 2025[66] Asset Management - The company's net asset value stood at HKD 12,841,987,000, down from HKD 13,098,548,000, indicating a reduction of approximately 1.96%[21] - The total assets of the company decreased from HKD 42,543,356,000 to HKD 41,055,669,000, a reduction of approximately 3.5%[36] - The group's current assets maintained at approximately HKD 3.7 billion, ensuring adequate cash and securities levels[12] - The company reported a significant increase in cash reserves, with restricted bank deposits rising to HKD 108,576,000 from HKD 87,680,000, an increase of approximately 23.83%[19] - The company’s investment properties were valued at HKD 5,942,996,000, compared to HKD 5,825,232,000, showing a slight increase of about 2.01%[19] Development Projects - The group launched the 640 Bourke Street property development project in Melbourne in March 2025, which received significant market attention[3] - The total expected development value of active residential property development projects across various regions is approximately HKD 61,800 million as of September 30, 2025[93] - The cumulative pre-sale value and contracted sales of properties under development remained at approximately HKD 9,300,000,000 as of September 30, 2025[3] - The expected total development value of completed saleable projects is HKD 10,001 million, with a total saleable area of 893,000 square feet[96] - The "Queen's Wharf Residences" in Brisbane includes two towers with a total saleable area of 519,000 square feet and an expected development value of HKD 4,040 million, with completion anticipated in the fiscal year 2029[95] Market Expansion and Strategy - The group plans to open the Dorsett Canary Wharf London hotel in September 2025, which will provide 237 stylish rooms and dining services[3] - The group expects to open the Perth Dorsett hotel in the next 12 months, which is anticipated to enhance the group's recurring income stream[3] - The company plans to continue focusing on market expansion and new product development to enhance future performance[30] - The group is committed to optimizing its asset-liability structure and executing divestment strategies for non-core assets to reduce overall leverage during market volatility[160] - The group aims to enhance its hotel portfolio to ensure sustainable development and align with economic recovery cycles[73] ESG and Corporate Governance - The company continues to focus on ESG factors in its strategic planning and risk management, aiming to enhance climate resilience and accelerate carbon reduction efforts[11] - The group is actively advancing its ESG agenda to enhance resilience and create sustainable value for shareholders, focusing on climate-related financial disclosures and risk assessments[152] - The company has adhered to the corporate governance code, with the chairman also serving as the CEO, which the board believes provides strong and consistent leadership[177] - The management believes that the adjusted financial metrics provide useful information for assessing the company's strategic operational performance[161] - The company emphasizes that non-GAAP financial measures should be viewed as supplementary to the financial performance analysis prepared under Hong Kong Financial Reporting Standards[161]

2025/2026 Interim Results November 2025 Steadfast in Efforts Striving Forward 迎風而上 堅毅前行 Disclaimer This document has been prepared by Far East Consortium International Limited (the "Company") solely for information purposes. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to purchase or subscribe securities (the "Securities") of the Company or any of its subsidiaries or affiliates in any jurisdiction or an inducement ...

Summary of Key Points Core Viewpoint - As of November 26, a total of 39 stocks reached their 52-week highs, with notable performances from Fire Rock Holdings (02975), Crocodile Garments (02977), and Aisuo Holdings (08585) showing significant increases in their high rates [1]. 52-Week Highs - Fire Rock Holdings (02975) achieved a closing price of 0.114 with a peak of 0.231, marking a high rate of 285.00% - Crocodile Garments (02977) closed at 0.085, reaching a high of 0.189, reflecting a high rate of 170.00% - Aisuo Holdings (08585) closed at 0.021, with a peak of 0.040, resulting in a high rate of 110.53% - Other notable stocks include: - Fulltech Electric Group Holdings (01750) with a high rate of 23.64% - Century United Holdings (01959) at 22.05% - Cassava Resources (00841) at 20.19% [1]. 52-Week Lows - The stock with the largest decline was Jia Jin Investment International (00310), which closed at 0.141, reaching a low of 0.137, resulting in a decline rate of -25.95% - Crown Central Properties (00193) closed at 0.168, with a low of 0.141, reflecting a decline rate of -18.02% - Lion Holdings (02562) had a closing price of 4.710, with a low of 4.680, showing a decline rate of -9.48% - Other significant declines include: - Huading Holdings (03398) at -7.14% - XL Two South Strategy - U (09799) at -5.96% [2].

Core Viewpoint - Far East Development (00035) anticipates a shareholder loss of no more than HKD 990 million for the six months ending September 30, 2025, compared to an estimated loss of approximately HKD 770 million for the six months ending September 30, 2024, primarily due to reduced property sales and various impairment losses [1] Financial Performance - The expected loss is attributed to a decrease in property sales and impairment losses, including those related to properties held for sale and losses recognized from an associate and a joint venture [1] - Despite the anticipated losses, the company expects adjusted cash profit (non-GAAP financial measure) to be no less than HKD 180 million for the six months ending September 30, 2025, compared to approximately HKD 33 million for the same period in 2024 [1] - The company also expects an improvement in the adjusted net debt-to-equity ratio as of September 30, 2025, compared to the adjusted net debt-to-equity ratio as of March 31, 2025 [1]

Core Viewpoint - Far East Development (00035) anticipates a shareholder loss of no more than HKD 990 million for the six months ending September 30, 2025, compared to an estimated loss of approximately HKD 770 million for the six months ending September 30, 2024, primarily due to decreased property sales and various impairment losses [1] Financial Performance - The expected loss is attributed to a reduction in property sales and impairment losses, including those related to properties held for sale and losses recognized from an associate and a joint venture [1] - Despite the anticipated losses, the company expects adjusted cash profit (non-GAAP financial measure) to be no less than HKD 180 million for the six months ending September 30, 2025, compared to approximately HKD 33 million for the same period in 2024 [1] - The company also expects an improvement in the adjusted net debt-to-equity ratio as of September 30, 2025, compared to the adjusted net debt-to-equity ratio as of March 31, 2025 [1]