COSMOPOL INT'L (stock code 00120) reported a sharp deterioration in top-line performance for the year ended 31 December 2025, as China’s prolonged property downturn eroded sales and triggered sizeable write-downs.

Revenue and Profitability • Group revenue fell 91.10% year on year to HK$32.80 million (2024: HK$368.90 million), reflecting weak demand for commercial and retail units at its Chengdu and Tianjin mixed-use projects. • Gross profit contracted 75.24% to HK$6.30 million, while operating loss before depreciation, finance costs and tax widened 53.42% to HK$437.40 million. • The Group booked impairment losses of HK$393.40 million on properties held for sale at Regal Cosmopolitan City (Chengdu) and Regal Renaissance (Tianjin). • Loss attributable to equity holders remained flat at HK$453.10 million; basic loss per share improved marginally to HK(29.56) cents (2024: HK(30.85) cents) due to a higher weighted average share base.

Balance Sheet and Liquidity • Total assets contracted 15.17% to HK$2.80 billion, pressured by the transfer of properties under development to “properties held for sale” and impairment charges. • Net assets attributable to shareholders dropped 43.54% to HK$384.40 million, driving basic net asset value per share down 54.35% to HK$0.21. • Cash and bank balances declined to HK$22.00 million (2024: HK$52.50 million). Net debt stood at HK$1.24 billion, trimming 6.27% from the prior year, but the gearing ratio rose to 44.3% (2024: 40.1%) on a reduced asset base. • Borrowings totalled HK$1.23 billion, comprising HK$312.00 million secured notes due within 12 months and HK$920.00 million in loans maturing mainly in October 2027. Post-year-end, the Group refinanced a US$40 million secured note for two additional years, averting a covenant breach.

Operational Update Chengdu – Regal Cosmopolitan City: Construction completed in May 2025. Sales of remaining office and retail units progressed slowly amid market softness. In January 2026 the Group agreed to sell the project’s hotel block for RMB143.0 million; completion is expected in 2Q 2026 with proceeds earmarked for debt reduction and working-capital support.

Tianjin – Regal Renaissance: All residential units are sold, but commercial and office sales remain sluggish. Portions of the commercial complex are leased to generate rental income.

Xinjiang Re-forestation Project: Approximately 4,300 mu re-forested to date; the Group expects a 1,843 mu land parcel to be available for future real-estate development upon regulatory completion of land-grant procedures.

Cash Flow and Dividend Operating activities consumed HK$70.30 million (2024: HK$238.30 million). Net interest payments totalled HK$73.50 million. The board recommended no final dividend, consistent with the prior year, as the Group prioritises liquidity.

Outlook Management cites continued commitment by China’s central government to stabilise the property market and anticipates emergent demand from high-growth domestic enterprises. COSMOPOL INT'L plans to relaunch unit or en-bloc sales in Chengdu and Tianjin, leveraging proceeds to strengthen its balance sheet, while selectively exploring new long-term investment opportunities.