Far East Holdings International Ltd. (HKEX: 00036) reported a smaller net loss for the year ended 31 December 2025, but continued operating pressures, a heavy debt load and a subsequent trading suspension have prompted its auditor to highlight “material uncertainty related to going concern”.

Revenue and Profitability • Revenue slid 16.9% to HK$11.83 million, entirely from property rental income, reflecting lower occupancy and rental rates. • Net rental income fell to HK$9.99 million from HK$11.73 million in 2024. • Total comprehensive loss shrank to HK$115.95 million (2024: HK$624.11 million) as fair-value losses on investment properties eased to HK$86.60 million from HK$575.60 million a year earlier. • Loss attributable to shareholders narrowed sharply to HK$73.38 million, down 78.6% year on year. • Basic loss per share improved to HK$0.24 from HK$2.83, after a 10-for-1 share consolidation in December 2024 and a two-for-one rights issue completed in February 2025.

Cost and Finance • Administrative expenses were trimmed to HK$3.49 million (-21.8% YoY). • Finance costs decreased 20.4% to HK$37.91 million, mainly due to reduced other-loan interest.

Balance Sheet and Liquidity • Cash and cash equivalents stood at HK$4.95 million (2024: HK$0.63 million). • Net current liabilities totalled HK$445.74 million, driven by: – Bank borrowing of HK$346.63 million, classified as current due to a repay-on-demand clause. – Other loans of HK$13.10 million and an amount due to a non-controlling interest of HK$86.85 million. • Total interest-bearing debt (bank borrowing, loan from a non-controlling interest and other loans) reached HK$512.43 million, while equity attributable to owners was just HK$0.29 million, pushing the gearing ratio to 176,093.5% (2024: 25,110.3%). • Investment properties were revalued at HK$681.70 million, down 11.3% YoY; HK$600.00 million of these assets are pledged for bank borrowings.

Capital Actions • A rights issue in February 2025 raised net proceeds of HK$69.55 million, mainly used to repay a shareholder loan (HK$44.00 million) and for working capital (HK$25.55 million). • Year-end share capital increased to 326.74 million shares from 108.91 million after the rights issue.

Post-Balance-Sheet Events • Trading in the company’s shares was suspended on 3 February 2026 after the Listing Review Committee upheld a decision that FE Holdings failed to meet HKEX Rule 13.24 on sufficient operations and assets. • The suspension triggered a breach of a bank-loan covenant tied to continuous trading; the lender has not yet demanded immediate repayment. • In January 2026 the Group secured HK$25.50 million in new third-party loans and HK$24.50 million in advances from a non-controlling interest, applying HK$52.97 million of proceeds to repay part of the bank borrowing.

Auditor’s View BDO Limited issued an unqualified opinion but drew attention to the Group’s HK$115.95 million loss, HK$445.74 million net current liabilities and minimal cash, noting a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern.

Operational Snapshot • Four tenants each contributed more than 10% of rental revenue. • Portfolio occupancy initiatives, potential asset disposals and further financing are being pursued to stabilise liquidity.

Dividend No final dividend was declared for FY 2025 (FY 2024: nil).

Outlook Management anticipates that an improving Hong Kong economy could lift occupancy and rental rates, while it continues to evaluate property acquisitions, disposals and other funding options to bolster the balance sheet.