WHARF REIC(HK:01997) 智通财经网·2025-08-08 06:04Core Viewpoint - Kowloon Warehouse Properties (01997) reported a significant decline in its stock price, dropping over 10% following the release of its mid-year results for 2025, indicating ongoing challenges in the retail sector and potential impacts on future earnings [1] Financial Performance - The company reported a revenue of HKD 6.407 billion for the first half of the year, a year-on-year decrease of 1.45% [1] - Shareholders faced a loss of HKD 2.406 billion, which represents a substantial year-on-year increase of 128.71% [1] - Excluding the impairment of investment properties, the unaudited net profit was HKD 3.119 billion, slightly down from HKD 3.123 billion in the same period last year [1] Management Outlook - The Chairman and Executive Director, Wu Tianhai, expressed cautious optimism regarding the retail market, noting that while there are positive signs in the second quarter, the sustainability of these improvements into the third quarter remains uncertain [1] - The management's conservative outlook is reflected in expectations of low single-digit declines in rental renewals for the second half of the year, which aligns with market expectations [1] Asset Enhancement Plans - The company is evaluating an asset enhancement plan for its Marco Polo Hotels, which is expected to require capital expenditure of approximately HKD 2 billion [1] - The full renovation is anticipated to commence by the end of 2026, with a projected temporary impact of 5% to 6% on rental income during the enhancement period [1]