Hong Kong–listed Zhongchang International Holdings Group Limited released its annual results for the year ended 31 December 2025, revealing a deeper full-year loss as weaker retail sentiment and lower property valuations weighed on performance.
Financial Performance • Revenue dropped 11.4% to HK$28.92 million, reflecting negative rental reversions and a decline in portfolio occupancy to 67.2% (FY2024: 70.6%). • A HK$173.00 million fair-value loss on investment properties and HK$46.36 million in finance costs pushed the Group to an operating loss of HK$153.92 million and a net loss of HK$200.94 million, versus a HK$176.74 million loss in FY2024. • Basic and diluted loss per share widened to 17.86 HK cents from 15.71 HK cents a year earlier. • Other income fell sharply to HK$0.01 million (FY2024: HK$1.25 million) due to lower bank interest income; staff costs declined 18.9% to HK$2.53 million following head-count reductions.
Balance Sheet and Liquidity • Total assets stood at HK$1.42 billion, down from HK$1.60 billion. Net assets decreased 25.9% to HK$575.87 million, equal to HK$0.51 per share. • The gearing ratio (total liabilities/total assets) rose to 59.6% (FY2024: 51.5%) as total liabilities reached HK$848.49 million. • Cash and cash equivalents fell to HK$11.13 million, while short-term bank and other borrowings increased to HK$815.54 million, all due within one year. The board cited expected financial support from the controlling shareholder to address the HK$813.97 million net current liability position. • No dividend was proposed for FY2025.
Operational Highlights • Jardine Center in Causeway Bay remained the primary income contributor, generating 76.6% of rental revenue. • Aggregate fair value of the Group’s six Hong Kong retail properties declined to HK$1.41 billion (FY2024: HK$1.58 billion). • Operating cost ratio (staff costs plus other operating expenses over revenue) rose to 30.6% from 27.6% a year earlier, driven mainly by higher building management fees on lower occupancy.
Outlook and Strategy Management expects the challenging retail environment to persist in 2026 but sees potential support from government tourism initiatives and mainland consumption stimulus. The Group plans to: 1. Prioritise liquidity by negotiating loan rollovers and rescheduling repayments. 2. Maintain stringent cost controls and prudent capital management. 3. Optimise tenant mix in its Causeway Bay portfolio to enhance resilience.
No significant investments, acquisitions, disposals or post-balance-sheet events were reported. The company’s corporate governance and internal control practices remained in compliance with Hong Kong listing requirements.
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