Hopson Development Holdings Limited (00754) has issued an announcement that the group expects to record a consolidated loss of not less than HK$12.5 billion for the year ending December 31, 2025, swinging from a profit in the same period of 2024 to a loss.

However, the core business has demonstrated strong resilience. The group expects its core profit for the year ending December 31, 2025 (referring to net profit after excluding the impact of non-recurring items such as impairment losses and fair value changes) to be not less than HK$1.2 billion, with the decline significantly smaller than the overall profit change compared to the same period in 2024, reflecting that the group's core operating capability remains stable amid the industry transformation phase as China's real estate market enters an era of stock development.

The results for the year ending December 31, 2025 were affected by the overall downturn in the real estate market and the industry's deep transformation from incremental development to stock operation, resulting in a phased reduction in property sales revenue, signs of impairment in inventory in some non-first-tier cities, as well as adjustments in the fair value of investment properties and a loss from the disposal of an associate company.

The above factors are primarily non-cash in nature and have no material impact on the group's operating cash flow. The group's overall financial position remains stable, with debt scale being reduced in an orderly manner as planned. Meanwhile, through debt restructuring and/or extension, the debt structure has been further optimized, and there are currently no outstanding offshore notes.

For the year ending December 31, 2025, the group's commercial real estate investment and operation as well as property management businesses continued to play a stabilizing role, consistently contributing a reliable and sustainable source of profit to the group, fully demonstrating the long-term strategic value of the group's adjustment and optimization of its business structure from traditional residential development toward real estate asset operation and management, property services, and other directions.

Against the backdrop of China's real estate entering an era of stock and the industry's deep transformation and development, the group proactively adapts to industry trends, actively responds to national policy directions, adheres to a prudent and steady financial approach, continuously promotes business structure upgrading, and focuses on core capability building and improvement of asset operation efficiency.

The group will further optimize the allocation of resources across all domains, cultivate brand advantages, enhance market competitiveness and recognition, and accumulate momentum for future high-quality development.