Pokfulam Development Company Limited (POKFULAM) reported a turnaround for the six months ended 31 March 2026, with net profit attributable to shareholders reaching HK$43.63 million, reversing a HK$131.0 million loss a year earlier. Excluding fair-value and other non-cash items, underlying net profit was HK$26.50 million (2025: HK$28.0 million).

Revenue slipped 2.0% year on year to HK$84.23 million, reflecting softer contributions from the trading and property management businesses. Segment details:

• Property investment & management: Revenue up 2.9% to HK$60.45 million; segment profit HK$62.61 million, lifted by a HK$17.62 million revaluation gain on investment properties after a HK$167.95 million loss in the prior period.

• Trading of goods (audio-visual and related systems via Elephant Holdings): Revenue fell 21.7% to HK$18.23 million; segment profit flat at HK$4,000.

• Securities investment: Revenue (dividend income) rose to HK$5.55 million; segment posted a HK$2.90 million loss, reflecting a HK$0.74 million fair-value decline.

Group EBITDA before fair-value changes increased 7.8% to HK$39.98 million.

Cash & liquidity: Cash and time deposits totalled HK$116.60 million (30 Sep 2025: HK$62.40 million). Bank borrowings expanded to HK$506.40 million (30 Sep 2025: HK$396.63 million), all repayable on demand. Unutilised banking facilities stood at HK$1.09 billion, and the debt-to-equity ratio rose to 11.6% from 9.1%.

Dividend: The Board declared an unchanged interim dividend of HK4 cents per share, payable on 2 July 2026 to shareholders on record as of 18 June 2026. The payout totals approximately HK$4.41 million.

Operational highlights:

• Residential rents advanced 8.0%, supported by firm demand from incoming professionals and students. Occupancy across the portfolio remained “healthy”. • Commercial rental income declined 13.5% amid elevated office vacancies in non-core districts; management focused on tenant retention at Beverly House in Wan Chai. • Industrial assets in Kwai Chung and Mong Kok maintained stable cash flows despite cautious demand. • Elephant Holdings contributed 21.6% of group revenue, underpinned by ongoing government and institutional projects. • Mainland China: The one-third-owned Guangzhou Silver Gain Plaza disposal tender remains on hold pending market recovery; Vivaldi Court (Beijing) leasing stabilised.

Investments: At 31 March 2026, the Group held HK$198.77 million in listed equities, bonds and unlisted funds. Key positions include the TKO property fund, senior secured loan funds (Adams Street, ALPS) and a China tech-focused Hundreds SH Fund LP. A revised investment policy (effective February 2026) tightened asset-allocation limits and credit benchmarks.

Capital commitments totalled HK$17.39 million, primarily for unlisted fund subscriptions and property renovations. Pledged assets comprised HK$4.17 billion of investment properties and HK$1.58 million of owner-occupied properties securing banking facilities.

Governance & compliance: The company cited one deviation from HKEX Code C.2.1, with Chairman and Managing Director roles both held by Mr Wong Tat Chang, Abraham; the board considers the arrangement appropriate given existing independent oversight. Audit, Remuneration and Nomination Committees remain fully constituted by independent non-executive directors.

Outlook: Management expects Hong Kong’s luxury residential leasing to stay robust, supported by talent inflows and lower interest rates. Office demand outside core districts faces continued pressure, while retail landlords adapt to evolving consumption patterns. The Group intends to prioritise occupancy, maintain disciplined cost and capital management, and pursue selective investment opportunities to enhance long-term returns amid geopolitical and macro-economic volatility.