K. Wah International Holdings reported a net loss attributable to shareholders of HK$869 million for FY 2025, reversing a profit of HK$335.07 million in 2024. The downturn stemmed primarily from a HK$715.47 million impairment on development properties and a HK$465.91 million share of joint-venture losses amid persistent price pressure in Mainland China’s residential market.
Revenue contracted 72.4 % year on year to HK$1.99 billion as recognised property sales fell sharply (HK$1.30 billion vs HK$6.45 billion a year ago). Including contributions from joint ventures and associates, total attributable revenue reached HK$11.55 billion. Rental income of HK$598.41 million, largely from Shanghai K. Wah Centre, remained resilient, while hotel operations added HK$84.26 million.
Key profitability metrics deteriorated: • Gross profit plunged to HK$4.54 million (2024: HK$1.36 billion). • Finance costs eased 17.4 % to HK$365.07 million, reflecting lower average borrowing costs (3.1 % vs 4.3 %). • Underlying loss (pre-fair-value changes) totalled HK$1.29 billion.
Fair-value gains of HK$524.68 million on investment properties, chiefly from Shanghai assets, partly cushioned the bottom-line hit.
Contracted sales performance and pipeline: • Attributable contracted sales reached HK$5.70 billion in 2025, led by Hong Kong joint-venture projects Villa Garda, KT Marina and Grand Mayfair, plus Cosmo in Guangzhou. • Unrecognised attributable contracted sales stood at HK$6.50 billion at year-end, to be booked from 2026 onwards.
Balance-sheet and liquidity highlights: • Net asset value per share: HK$12.70 (2024: HK$12.71). • Cash and bank deposits: HK$6.47 billion; undrawn facilities: HK$15.88 billion. • Total borrowings trimmed to HK$13.74 billion (-5.7 %). • Gearing rose to 17 % (2024: 12 %) due to lower cash following loan repayments. • HK$242 million of bank guarantees remain outstanding for joint-venture loans, sharply lower than HK$8.15 billion a year earlier.
Dividend policy adjusted: • Full-year dividend cut to 3 HK cents per share (interim 2 HK cents; proposed final 1 HK cent) from 9 HK cents in 2024, implying a cash payout of HK$94.58 million.
Investment portfolio: • 3.71 % stake in Galaxy Entertainment Group (GEG) marked at HK$6.23 billion (9 % of total assets), recording an unrealised fair-value gain of HK$864.42 million and dividend income of HK$194.98 million.
Operational outlook: Management cites continued liquidity strength and intends to pursue selective land-banking opportunities in Hong Kong and the Pearl and Yangtze River Delta regions. While acknowledging a subdued global backdrop and cautious Mainland housing sentiment, the Group anticipates gradual recovery in Hong Kong residential prices (5 %–7 % forecast rise in 2026) and targeted policy support on the Mainland. Focus remains on disciplined cost control, timely project delivery and maximising returns from its HK$44.40 billion development pipeline and HK$17.85 billion investment property portfolio.
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