Lai Sun Development Company Limited (abbrev. “Lai Sun Dev”) reported a net loss attributable to shareholders of HK$1.17 billion for the six months ended 31 January 2026, a sharp rise from HK$117.81 million a year earlier. The deterioration stemmed mainly from HK$405.17 million of fair-value losses on investment properties, HK$272.69 million of losses from joint ventures—largely due to property write-downs—and one-off losses related to the sale and write-down of accommodation towers at Hengqin Novotown Phase II.

Turnover inched up 1.4% year on year to HK$2.58 billion. Property development and sales revenue grew 8.2% to HK$667.80 million, boosted by the completion of Hong Kong projects Bal Residence and The Parkland and the recognition of income from Hengqin Novotown Phase II’s Tower 1 sale. Property investment income fell 7.7% to HK$573.10 million due to rental pressure in Hong Kong and mainland China, while hotel operations slipped 1.5% to HK$637.78 million.

Adjusted EBITDA, which strips out fair-value changes and other non-cash or one-off items, declined 23.3% to HK$379.10 million. Adjusted net loss narrowed slightly to HK$400.70 million from HK$411.80 million a year earlier.

Segment performance: • Hong Kong property sales: All 156 units at Bal Residence and all 112 units at The Parkland are now sold. • Mainland development: Lai Fung Group booked HK$294.40 million from the sale of Tower 1 at Hengqin Novotown Phase II and has contracted HK$367.20 million for Tower 3, to be recognised later. • Residential presales: Joint-venture project “Deep Water Pavilia” in Wong Chuk Hang has presold about 780 of 825 units for HK$13.70 billion. • Rental portfolio: Overall rental income fell to HK$573.10 million, with Hong Kong down 6.0% and mainland China down 1.9%. Group occupancy stayed largely above 90% for core Hong Kong assets; Shanghai Skyline Tower and Guangzhou Lai Fung International Center continued to ramp up. • Non-property businesses: Restaurant/F&B revenue rose 7.4% to HK$234.0 million, and cinema operation revenue was stable at HK$221.40 million, but tighter cost control turned prior-year losses into segment profits.

Balance-sheet and cash position: • Net current assets turned positive at HK$789.50 million (31 July 2025: net current liabilities of HK$4.51 billion). • Total financial resources stood at HK$4.92 billion, including HK$2.94 billion in cash and equivalents, HK$1.10 billion in pledged or restricted deposits, and HK$879.50 million in undrawn bank facilities. • Total borrowings were HK$25.85 billion; gearing ratio rose to 98%. • Major refinancing included a HK$3.46 billion five-year syndicated loan for Cheung Sha Wan Plaza (September 2025) and a HK$3.05 billion facility for Lai Fung (March 2026). • Planned disposals: Since mid-2025, the Group has announced or completed asset disposals expected to raise about HK$7.00 billion toward a two-year HK$8.00 billion target. Key transactions include the pending HK$2.40 billion sale of 3 Connaught Road Central (completion targeted for Q2 2026) and the HK$113.90 million disposal of its stake in New Vision Fund, completed in March 2026.

Outlook: Management flagged continued headwinds in Hong Kong and mainland commercial real-estate markets amid subdued consumer and corporate spending, alongside heightened geopolitical uncertainty. The Group will focus on accelerating residential launches, pursuing further asset disposals, and reinforcing liquidity to support ongoing deleveraging.