Hong Fok Corporation Limited has more than doubled its full-year net profit to about S$30.6 million for the 12 months ended 31 Dec 2025, up 116 per cent year-on-year, helped by a larger S$16.2 million fair-value gain on investment properties and lower financing costs. Group revenue slipped 6 per cent to S$98.3 million as slower condominium sales offset firmer rental contributions from investment assets.
Earnings per share climbed to 4.44 Singapore cents from 3.70 cents a year earlier. The board has recommended a first and final tax-exempt (one-tier) dividend of 1.0 cent per share, unchanged from the preceding year; the payment timetable will be announced after shareholder approval at the coming AGM.
Property investment remained the largest contributor, booking S$80.2 million in revenue and generating S$33.4 million in pre-tax earnings, up sharply from S$12.9 million in FY2024. Pre-tax profit from property development and construction eased to S$4.6 million, reflecting reduced sales of Concourse Skyline units, while property management posted a S$0.6 million loss. Other operations recorded a pre-tax loss of S$3.4 million.
Lower condominium handovers led to a 48 per cent decline in cost of sales of development properties, cushioning the revenue shortfall. Employee benefit expenses fell 19 per cent on reduced bonuses and lower long-term benefit provisions, while finance expenses dropped 29 per cent on lower borrowing costs. These gains were partially offset by a swing to a net exchange loss of S$1.0 million and a 71 per cent fall in finance income.
On the balance sheet, investment properties expanded to S$3.52 billion after the S$27.8 million purchase of five units at International Building and S$2.5 million of capital expenditure. Development properties shrank to S$89.5 million following sales at Concourse Skyline. Net borrowings inched up to S$685.7 million, partly funding the International Building acquisition and additional investment holdings.
Looking ahead, management signalled cautious optimism. For its YOTEL Singapore Orchard Road hotel, the group will focus on yield management, cost control and asset-enhancement initiatives as travel demand builds. Office rentals are expected to remain resilient amid rising occupancies, while a lower interest-rate environment should support continued sales at Concourse Skyline and ease financing costs.