Financial Performance - The company reported a net loss attributable to shareholders of HKD 164 million, an improvement from a loss of HKD 174.5 million in the previous fiscal period, primarily due to a decrease in fair value losses on investment properties [4]. - Adjusted EBITDA was HKD 247 million, down 53.5% year-on-year, attributed to a decline in property sales [4]. - Total revenue for the six months ended January 31, 2025, was HKD 647,773,000, a decrease of 54.0% compared to HKD 1,409,290,000 for the same period in 2024 [18]. - The group reported a loss of HKD 181,989,000 for the period, compared to a loss of HKD 202,037,000 in the previous year [24]. - The group’s operating profit was HKD 185,463,000, down from HKD 363,063,000 in the previous year, reflecting a decline of 48.9% [24]. - The company reported a basic loss attributable to shareholders of HKD 163,989,000 for the six months ended January 31, 2025, compared to a loss of HKD 174,530,000 for the same period in 2024 [30]. - Total tax expenses for the period amounted to HKD 109,254,000, a decrease of 56.4% from HKD 250,226,000 in the previous year [28]. - The adjusted EBITDA for the group was approximately HKD 247 million for the six months ended January 31, 2025, down from HKD 530.9 million in the same period last year, representing a decrease of about 53.4% [55]. - The group reported an adjusted net loss attributable to the owners of approximately HKD 160.5 million for the six months ended January 31, 2025, compared to a loss of HKD 100.5 million in the previous year, indicating an increase in loss of about 59.7% [58]. Revenue Sources - Rental income generated from the leasing portfolio was HKD 513.1 million, with a stable occupancy rate that increased by 2.3% compared to the same period last year [4]. - Confirmed property sales and other operations amounted to HKD 134.7 million, a significant decline of 85.2% year-on-year, mainly due to reduced sales of residential units in Zhongshan and Hengqin [4]. - Revenue from property sales was HKD 131,197,000, down 85.4% from HKD 897,917,000 in the previous year [18]. - Hotel and serviced apartment operations generated revenue of HKD 146,813,000, slightly down from HKD 149,748,000, a decrease of 1.3% [18]. - The hotel and serviced apartment operations generated revenue of HKD 146.8 million for the six months ending January 31, 2025, a slight decrease of approximately 2.0% compared to HKD 149.8 million in the previous year [91]. - The property development business recorded revenue of HKD 131.2 million for the six months ending January 31, 2025, a significant decline of 85.4% from HKD 897.9 million in the previous year [96]. Asset and Liability Management - Total cash and bank balances as of January 31, 2025, were approximately HKD 1.78 billion, with undrawn bank financing of about HKD 2.61 billion [4]. - The total borrowings remained stable at HKD 10.07 billion as of January 31, 2025, compared to HKD 9.85 billion on July 31, 2024 [4]. - Financing costs decreased by 17.7% to HKD 259.1 million, as the group successfully refinanced certain borrowings at lower interest rates [4]. - The group’s total liabilities were HKD 15,893,246,000, compared to HKD 15,763,659,000 in the previous year, indicating a slight increase [22]. - The debt-to-equity ratio as of January 31, 2025, was approximately 69%, up from 65% on July 31, 2024 [47]. - The maturity profile of borrowings includes HKD 1,541,400,000 due within one year, HKD 3,617,100,000 due in the second year, HKD 2,131,300,000 due in the third to fifth years, and HKD 2,776,000,000 due after five years [119]. - 99% of the borrowings are floating rate, with 65% denominated in RMB, 32% in HKD, and 3% in USD [120]. - The group believes it has sufficient liquidity for property development and investment projects based on cash holdings, available bank financing, and recurring cash flows from operations [121]. Property and Project Developments - The company has successfully positioned its Hengqin Innovation Park project as a cross-border e-commerce industrial park, incorporating diverse facilities such as a multi-functional exhibition center and an international school [41]. - The first phase of the Hengqin Innovation Project has achieved full operational status, with approximately 81% of office units leased out [42]. - The commercial area of the first phase is currently 84% leased, with major tenants including popular brands like HeTea and McDonald's [43]. - The second phase of the Hengqin Innovation Project has received government approval for the development of eight affordable rental housing buildings [43]. - The Hengqin Innovation Square project is positioned as a cross-border e-commerce industrial park, attracting leading domestic e-commerce platforms and technology companies [84]. - The first phase of Hengqin Innovation Square has achieved approximately 81% office unit leasing, with expectations of employee numbers expanding from 1,200 to over 3,000 [86]. - The second phase of Innovation Square has received government approval for the development of eight affordable rental housing buildings, addressing the growing demand in the Hengqin commercial ecosystem [88]. Market Conditions and Future Outlook - The company anticipates continued challenges in the global economic landscape, prompting a cautious approach focused on cost control and cash recovery [37]. - The company expects the rental rates in Shanghai to decline due to oversupply and weak demand in the office market [39]. - The company’s strategy emphasizes regional focus and leasing leadership to maintain high occupancy rates amid economic uncertainties [39]. - The group actively sought new tenants and maintained long-term relationships with existing tenants to sustain current occupancy rates amid a challenging economic environment [62]. - The company is focusing on expanding its presence in the Greater Bay Area, leveraging strategic advantages for future growth [83]. Occupancy and Rental Performance - The occupancy rate for Shanghai Hong Kong Plaza was 92.5% for retail and 87.2% for office as of January 31, 2025, compared to 96.2% and 89.7% respectively for the same period in 2024 [63]. - Guangzhou Li Feng International Center saw a significant revenue increase of 78.6% to HKD 30.9 million for the six months ended January 31, 2025, compared to HKD 17.3 million in 2024 [63]. - The rental revenue for Shanghai Mayflower Life Plaza remained stable at HKD 20.4 million, with a slight increase of 0.5% compared to HKD 20.3 million in the previous year [63]. - The occupancy rate for Guangzhou Li Feng Center was 100% for retail and 89.0% for office as of January 31, 2025, compared to 100% and 86.5% respectively for the same period in 2024 [64]. - The rental revenue for the retail segment in Shanghai Hong Kong Plaza was HKD 83.2 million, slightly down from HKD 83.4 million in the previous year [64]. - The rental revenue for the office segment in Shanghai Li Feng Skyline Center increased to HKD 23.5 million, up from HKD 19.4 million in the previous year [64]. - The occupancy rate for the retail segment in Guangzhou Mayflower Commercial Plaza was 95.0% as of January 31, 2025, compared to 90.0% in the previous year [63]. - The total rental revenue for the six months ended January 31, 2025, was HKD 366.3 million, representing a 4.2% increase compared to HKD 351.7 million for the same period in 2024 [63].
丽丰控股(01125) - 2025 - 中期业绩