Liu Chong Hing Investment Limited Announces 2025 Audited Results: Major Turnaround and Strategic Updates

Key Financial Highlights

• Significant Turnaround to Profit: The Group reported a consolidated profit of approximately HK\$3.4 million for the year ended 31 December 2025, reversing a substantial loss of HK\$840.4 million in 2024. The turnaround, amounting to an improvement of roughly HK\$843.8 million, was primarily driven by a marked reduction in fair value losses on investment properties and a sharp increase in the Group’s share of profits from joint ventures.
• Revenue Growth: Total consolidated revenue increased to HK\$1,053.2 million from HK\$933.0 million in 2024. Key revenue contributors included property development (HK\$394.3 million), property investment (HK\$316.7 million), hotel operations (HK\$149.2 million), treasury investment, trading & manufacturing, and property management.
• Earnings Per Share (EPS): Basic earnings per share rose to HK\$0.03, compared to a loss per share of HK\$(2.21) in 2024.
• Dividend: The Board proposes a final cash dividend of HK\$0.17 per share (total payout HK\$64.36 million), consistent with 2024. Together with the interim dividend of HK\$0.11 per share, the total dividend for 2025 will be HK\$0.28 per share.
• Strong Balance Sheet: Total equity stood at HK\$10.6 billion. The Company maintained net current assets of HK\$1.86 billion and cash and cash equivalents of HK\$1.77 billion.

Segmental Performance

Property Investment

• Rental Revenue: Increased by HK\$14.3 million (4.7%) to HK\$316.7 million.
• Occupancy: Overall occupancy for major investment properties was 82.9% at year-end.
• Key Properties:
  • Chong Hing Square: Rental revenue HK\$62 million (up HK\$2.3 million); 92% occupancy.
  • Chong Hing Bank Centre: Rental revenue HK\$74.8 million (down HK\$3 million); new 5-year lease with Chong Hing Bank at HK\$6.08 million/month, ensuring stable future income.
  • The Rockpool: Rental revenue HK\$14.2 million (down HK\$1.3 million); 93% occupancy, carparks fully leased.
  • Fairview Court: Rental revenue HK\$4.3 million (up HK\$1.7 million); 100% occupancy.
  • 181–183 Connaught Road West (formerly One-Eight-One Hotel & Serviced Residences): Tenancy agreement with associate of GDH Limited, generating HK\$27.1 million rental revenue, providing stable income for 10 years with a renewal option.
  • Chong Hing Finance Center, Shanghai: Rental revenue HK\$98.1 million (down HK\$10.6 million); office occupancy 75%, retail 83%; impacted by weak Shanghai market but tenant base remained stable.
  • Barratt House, London: Rental income HK\$25.1 million (up HK\$0.8 million); 86% occupancy.

Property Development

• Sales Revenue: HK\$394.3 million (up HK\$170.6 million, +76.3%).
• Key Projects:
  • The Grand Riviera, Foshan: Sold 22 residential units (up from 3 in 2024) and 187 car parks (up from 46). 100% of 5,264 residential units and 53% of 4,670 car parks sold, with HK\$6 billion cumulative sales. Potential HK\$700 million upside if all car parks and shops sold.
  • Elegance Garden, Sanshui: Of 724 launched units, 568 sold (78%), generating RMB585.4 million. Remaining 360 units to be sold in 2026.

Hotel Operations

• Kimpton Kitalay Samui (Thailand): Gross revenue HK\$143.7 million (up HK\$22.3 million), EBITDA HK\$55.5 million. Performance exceeded budget, driven by effective marketing and high guest satisfaction as the top-rated Kimpton in Asia Pacific.
• 181–183 Connaught Road West: Shifted to a stable rental model, reducing management complexities and ensuring predictable income.

Share of Results of Joint Ventures

• Turned from a loss of HK\$46.2 million in 2024 to a gain of HK\$93 million in 2025, mainly due to the profitable sale of the Japan warehouse portfolio (HK\$500 million proceeds) and partial disposal of Australia property trust interests.

Other Key Points for Shareholders

• Dividend and AGM Dates:
  • Proposed final dividend of HK\$0.17 per share (ex-dividend date: 27 May 2026; payment date: 8 June 2026).
  • Annual General Meeting scheduled for 21 May 2026.
• Risk Factors and Market Outlook:
  • Despite a challenging global and China property market, management remains focused on prudent financial management, operational efficiency, and asset utilization to support earnings resilience.
  • Stabilization in Hong Kong (tourism, retail, and interest rates) may support a gradual recovery; Shanghai market remains weak and uncertain.
  • Continued strong cash position and sufficient public float maintained.
• Corporate Governance and Board Changes:
  • Company generally complied with Corporate Governance Code, except for combined Chairman and CEO roles, justified by business needs and expertise.
  • Director changes: Mr. Cheng Yuk Wo retired from CSI Properties and CPMC Holdings; Ms. Ngan Suk Fun Mariana joined Dah Sing Bank as INED.

Potential Price-Sensitive and Shareholder-Relevant Information

• Return to Profitability: After a significant loss in 2024, the Group’s return to profit—mainly due to reduced fair value losses and gains from joint ventures—represents a material reversal that could impact investor sentiment and share price.
• Stabilized and Growing Dividends: Continued commitment to a stable and attractive dividend policy (HK\$0.28 per share total payout) may support share value.
• Strategic Asset Sales and Capital Recycling: The disposal of non-core assets (Japan warehouses, partial Australia trust) has generated significant gains and improved the Group’s financial position.
• Renewed Leases and New Tenancy Agreements: The long-term lease renewal with Chong Hing Bank Centre and the 10-year hotel tenancy at Connaught Road West ensure stable, recurring cash flows, reducing operational risks.
• Exposure to Market Risks: The Group remains exposed to the uncertain China and Shanghai property markets, which could affect future rental and development income.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own due diligence and consult with professional advisors before making investment decisions. The author and publisher are not responsible for any losses incurred as a result of reliance on the information provided herein.

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