Capital Estate Limited (Stock Code: 193) released its Annual Report for the year ended 31 July 2025. Gross proceeds amounted to approximately HK$487.4 million, a notable increase compared to HK$122.7 million in 2024. Despite the rise in gross proceeds, the company reported a loss attributable to owners of the Company of HK$13.9 million for 2025, compared with a profit of HK$5.6 million in the prior year.

According to the announcement, the turnaround to a loss was mainly caused by reduced share of profit from an associate and higher depreciation expense following the renovation of the Group’s hotel properties. No dividend was proposed for 2025.

The Group’s business operations encompass property development, hotel operation, consumer finance, and financial investments. Property sales generated HK$11.9 million, while hotel operations recorded HK$12.9 million in revenue. The consumer finance division contributed HK$28.6 million in interest income, and various securities and other business segments totaled HK$434.1 million in gross proceeds.

In consumer finance, the net loan portfolio stood at HK$58.8 million at year-end. Impairment losses under the expected credit loss model were HK$8.5 million, mainly because of default risk inherent in the unsecured lending business. Meanwhile, the Group’s investment portfolio in listed securities and marketable instruments reached HK$256.7 million, bringing net fair value gains but also incurring a loss of HK$21.3 million on certain derivative contracts.

Hotel Fortuna in Foshan recorded a turnover of HK$12.9 million, reflecting challenges from the competitive market. Occupancy rate for the year was approximately 21.1%. Its associated hotel in Macau posted a turnover of HK$187.9 million, with occupancy of around 97.1%. Consumer finance saw a year-on-year rise in revenue to HK$28.6 million.

The company’s gearing ratio, calculated as a percentage of total liabilities over shareholders’ funds, stood at 8.4% (2024: 4.9%). Bank balances, cash, and marketable securities were HK$47.8 million and HK$256.7 million respectively as of 31 July 2025. A share placement in February 2025 raised net proceeds of approximately HK$10 million for general working capital and operations.

Management remains guardedly optimistic about hotel business in Asia and is focused on improving occupancy levels and service quality. The board intends to maintain a prudent approach, monitoring global economic conditions closely while exploring opportunities for sustainable long-term growth.