Great China Holdings (Hong Kong) posts wider FY2025 loss of HK$148.36 million after sharp revenue fall and sizeable impairments

Bulletin Express
04/01

Great China Holdings (Hong Kong) Limited reported a consolidated net loss attributable to shareholders of HK$148.36 million for the year ended 31 December 2025, deepening from the HK$108.66 million loss restated for 2024. The downturn stemmed from a 54.3% slide in total revenue to HK$60.63 million as property sales volumes declined, coupled with multiple non-cash charges.

Key financial movements • Revenue fell to HK$60.63 million (2024: HK$132.58 million), driven primarily by a reduced area handed over in the Jin Bao Cheng residential project. • Gross profit contracted to HK$12.51 million (2024: HK$40.22 million), while gross margin narrowed to 20.6% from 30.3%. • Major non-recurring expenses included:  – HK$44.72 million impairment on goodwill.  – HK$37.55 million fair-value loss on investment properties.  – HK$13.32 million impairment on completed properties held for sale. • Net foreign-exchange loss reached HK$41.53 million, reversing a HK$26.71 million gain in 2024. • Finance costs were contained at HK$1.09 million (2024: HK$1.17 million). • A deferred-tax credit of HK$13.41 million outweighed current EIT and LAT charges, producing a net tax credit of HK$5.31 million.

Earnings and shareholder metrics • Basic and diluted loss per share widened to HK3.73 cents from HK2.73 cents. • No dividend was declared.

Balance sheet highlights • Total assets stood at HK$1.92 billion; investment properties were valued at HK$186.08 million and properties under development at HK$605.52 million. • Net current liabilities increased to HK$406.19 million (2024: HK$330.46 million). • Shareholders’ equity fell to HK$604.83 million, lowering book value per share to approximately HK$0.152. • Gearing ratio (interest-bearing liabilities/total equity) edged up to 3.5% from 3.0%. • Capital commitments totalled HK$410.91 million, of which HK$198.06 million relates to construction and HK$212.85 million to further advances to an associate. • A substantial shareholder has undertaken not to demand repayment of HK$973.97 million of balances “until the Group is in a position to do so,” supporting the going-concern basis.

Operational review • Property Development:  – Jin Bao Cheng Project (Shanwei): 2025 property sales recognised at HK$49.91 million; contract liabilities from pre-sales stood at HK$33.31 million.  – Gold Coast Resort (Shanwei): Phase 1 sales centre ready, Phase 2 plan awaiting approval.  – Tanghai County, Hong Hai Bay and Daya Bay projects remain under various stages of planning, redesign or suspension. • Rental Income: Commercial space at Eastern New World Square generated HK$1.26 million (2024: HK$1.41 million).

Litigation and contingencies • The Group is pursuing recovery of a RMB123.9 million shareholder loan linked to the Heqing project; a new claim was filed in February 2026 after earlier proceedings were withdrawn. • Guarantees on purchasers’ mortgages amounted to RMB155.63 million (HK$173.44 million) at year-end.

Outlook Management will continue to focus on mid- to high-end commercial and tourism property development, adjust construction and sales timetables in response to market conditions, and explore cost-effective investment opportunities to diversify revenue streams.

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