WANG ON PPT (01243) announced that the Group expects to record a net comprehensive loss attributable to owners of the Company of no more than HK$390 million for the six months ending September 30, 2025, compared to a profit of approximately HK$96.9 million for the same period in 2024.
The expected loss is primarily due to the following factors: (1) A disposal loss of approximately HK$208 million from the sale of a 20% equity interest in a joint venture company holding a hotel project. (2) Gross profit declined from HK$92.7 million in the six months ended September 30, 2024, to a gross loss of approximately HK$16.6 million in the current period, reflecting lower profitability in property sales. (3) Share of profits from joint ventures decreased from HK$249 million in the prior period to approximately HK$63.6 million, mainly due to continued weakness in the commercial property market.
Regarding item (1), the disposal of the 20% stake in the hotel project was a strategic move to reallocate resources for future investment opportunities and expand into other high-potential projects. Prior to the sale, the Group had successfully redeveloped the property into student accommodation, which achieved high occupancy rates and stable operational performance. The divestment was a strategic decision aimed at exploring potential collaborations with investment partners (particularly in student housing) and enhancing cash flow liquidity to support ongoing business growth.
The current period's loss primarily stems from the Group's strategic divestments of certain assets (including properties held for sale and joint venture interests) to strengthen liquidity and ensure sustainable growth amid challenging market conditions. Despite accounting losses from these disposals, they generated immediate cash inflows and significantly reduced net debt.
The Board believes this approach is crucial for maintaining capital structure flexibility and positioning the Group to capitalize on future opportunities. From April 1, 2024, to September 30, 2025, the Group reduced net debt by approximately HK$1.202 billion (down 30.1% from March 31, 2024) through asset sales, enhancing resilience amid market uncertainty.
Notably, the Group achieved record contracted sales of HK$1.637 billion during the period, up 31.3% YoY from HK$1.247 billion in 2024. As of September 30, 2025, unrecognized contracted sales totaled approximately HK$2.674 billion, which will be recognized as revenue upon completion and delivery of relevant property projects.