Top Spring reports wider HK$2.91 billion annual loss; gross margin turns sharply negative and net gearing climbs to 145%

Bulletin Express
Mar 31

Top Spring International Holdings (Top Spring) released its audited results for the year ended 31 December 2025, posting a loss attributable to equity shareholders and perpetual convertible securities holders of HK$2.91 billion, up 58.6% from HK$1.83 billion in 2024.

Revenue dipped 0.7% year-on-year to HK$1.36 billion. A steep impairment on inventories and continued valuation declines in investment properties pushed gross profit into a HK$678.07 million loss, translating into a gross loss margin of 49.9% versus 8.5% a year earlier.

Key operating metrics • Pre-sales (properties and car parks): HK$670.10 million, down 14.3%; pre-sold GFA fell 12.9% to 12,430 sq m and average selling price slipped 1.6% to HK$53,749 per sq m. • Recurring rental income: HK$210.60 million, down 5.6%. The investment portfolio, mainly in the mainland and Hong Kong, carried a fair value of HK$5.83 billion (52.1% of total assets) with an occupancy rate of 89.3%. • Investment property fair-value loss: HK$833.85 million, compared with HK$1.20 billion in 2024.

Balance-sheet highlights • Cash and cash equivalents: HK$520.95 million (31 Dec 2024: HK$376.87 million). • Restricted and pledged deposits: HK$123.78 million (31 Dec 2024: HK$1.38 billion). • Net gearing ratio surged to 145.0% from 80.0% as total borrowings stood at HK$5.14 billion. • Total assets fell 28.5% to HK$11.19 billion; net assets more than halved to HK$3.10 billion. Net assets per share dropped to HK$2.20 from HK$4.00.

Liquidity and going-concern considerations Auditors highlighted a material uncertainty over the group’s ability to continue as a going concern given sizeable current borrowings of HK$1.65 billion against cash of HK$520.95 million and a challenging financing environment. Management is negotiating loan renewals, seeking asset disposals and stepping up cost controls to address funding needs.

Dividend The board recommended no final dividend for 2025 (2024: nil).

Outlook Top Spring plans to focus on the Greater Bay Area, Yangtze River Delta and other core mainland regions while continuing to hold and optimise income-generating properties. The group had 15 projects with an estimated 389,974 sq m of saleable/leasable GFA in its landbank as at 31 December 2025.

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