Lai Sun Development Company (488) H1 2026 earnings summary

Executive summary

• Turnover for the six months ended 31 January 2026 was HK$2,583.5 million, up 1.4% year-over-year, driven by property development sales and F&B operations, but offset by lower rental and hotel income.

• Gross profit fell 30.4% to HK$656.2 million due to losses on property sales and write-downs in Hengqin Novotown Phase II.

• Net loss attributable to owners was HK$1,166.5 million, compared to HK$117.8 million loss last year, mainly from property write-downs, fair value and impairment losses.

• Adjusted net loss (excluding fair value and non-recurring items) was HK$400.7 million, similar to last year.

Financial highlights

• Property development and sales revenue rose 8.2% to HK$667.8 million; property investment revenue dropped 7.7% to HK$573.1 million.

• Hotel operation revenue decreased 1.5% to HK$637.8 million; restaurant and F&B sales grew 7.4% to HK$234.0 million.

• Adjusted EBITDA was HK$379.1 million, down 23.3% year-over-year.

• Net loss per share was HK$0.803 (2025: HK$0.081).

• Equity attributable to owners stood at HK$22,314.1 million; net asset value per share was HK$15.354.

Outlook and guidance

• The group expects continued uncertainty in 2026 due to global geopolitical conflicts and commercial real estate challenges in Hong Kong and Chinese Mainland.

• Plans to accelerate asset disposals and maintain proactive liquidity management.

• New residential launches in Hong Kong are planned for 2026; further en-bloc sales in Hengqin are targeted.