Far East Hotels and Entertainment Limited (FE HOTELS) released audited results for the year ended 31 March 2026, showing a sharp narrowing of group net loss to HK$6.64 million from HK$35.36 million in FY 2025. Loss per share improved to HK$0.88 cent from HK$4.70 cents.
Revenue from continuing operations fell 11.64 % to HK$16.38 million, driven mainly by weaker hotel and food-and-beverage income. Despite the top-line contraction, gross profit rose 26.79 % to HK$5.38 million, lifting the gross margin to 32.86 % (FY 2025: 22.89 %).
Segment details • Hotel operation (Cheung Chau Warwick Hotel): Revenue decreased 18.77 % to HK$12.97 million, but segment profit rose to HK$0.15 million (FY 2025: HK$0.03 million) on cost controls. Room revenue increased 3.30 % to HK$11.24 million, while food-and-beverage sales fell 66.00 % to HK$1.73 million amid reduced banquet activity. • Property investment – Hong Kong: Rental income edged up to HK$1.05 million. A fair-value gain of HK$0.80 million (prior-year loss: HK$22.30 million) cut the segment loss to HK$0.89 million (FY 2025: HK$25.24 million loss). • Property investment – Fiji: Revenue grew 54.19 % to HK$2.35 million, turning the segment to a HK$0.25 million profit from a HK$0.80 million loss. • Securities investment and trading: Fair-value gains of HK$0.84 million and dividends of HK$0.33 million produced a HK$1.41 million profit (FY 2025: HK$6.06 million).
Discontinued operation (Beijing serviced property) recorded a HK$2.72 million profit versus a HK$6.28 million loss a year earlier, aided by a HK$2.55 million tax credit and reversal of provisions.
Cost and expenses Administrative expenses fell 9.26 % to HK$14.22 million. Finance costs dropped 26.12 % to HK$0.41 million as bank borrowings declined to HK$7.76 million (FY 2025: HK$8.43 million).
Balance sheet and liquidity • Cash and cash equivalents: HK$8.20 million (FY 2025: HK$7.89 million). • Net current assets: HK$8.88 million. • Investment properties: HK$256.75 million, up HK$2.92 million year-on-year. • Gearing ratio improved slightly to 2.64 % (total bank borrowings/shareholders’ funds) from 2.81 %. • No dividend was declared.
Capital commitments totalled HK$0.60 million, while contingent guarantees for subsidiary bank facilities stood at HK$8.40 million. No material post-balance-sheet events were reported.
Outlook Management cited ongoing geopolitical and economic uncertainties but remains focused on operational adaptability, the repositioning of food-and-beverage offerings, and the progression of the Kau Wa Keng residential development project, including a revised master plan submitted in April 2025.