Shun Ho Property Investments Limited reported a net loss attributable to shareholders of HK$45.94 million for the six months ended 30 June 2026, sharply narrower than the HK$138.18 million loss a year earlier.
Revenue climbed 1.5% year on year to HK$339.37 million, driven by a 5.1% rise in hotel income to HK$281.83 million. Property-rental income fell 13.3% to HK$57.49 million, reflecting softer occupancy at 633 King’s Road (78%) and Shun Ho Tower (93%). Dividend income was steady at HK$0.05 million.
Gross profit increased 22.6% to HK$90.35 million as hotel operating gains and tighter cost control offset higher administrative expenses, which rose 7.8% to HK$32.59 million. Finance costs dropped 28.8% to HK$16.98 million on lower borrowings.
A HK$68.29 million fair-value decline in investment properties—less severe than the HK$154.80 million hit a year ago— remained the principal drag on earnings. Excluding revaluation effects, property investment generated HK$56.02 million profit, while hotels contributed HK$34.28 million, a 266% jump.
Group EBITDA (gross profit plus other income minus operating expenses before depreciation and finance costs) reached approximately HK$58 million versus HK$43 million in the prior-year period.
Net operating cash inflow helped lift cash on hand to HK$351.91 million from HK$267.66 million at end-2025. Total bank loans declined 2.4% to HK$811.06 million, keeping the group’s gearing stable at roughly 10% of total capital.
No interim dividend was declared, with the board citing softer commercial‐rental cash flows—down 24% year on year—and a priority to preserve liquidity ahead of a term-loan maturity in 2027.
Segment performance: • Hospitality services: Revenue HK$281.83 million (+5%), segment profit HK$34.28 million (prior-year HK$9.35 million), underpinned by >90% average occupancy across nine hotels. • Property investment: Revenue HK$57.49 million (-13%), segment loss HK$12.27 million (versus HK$90.49 million loss), helped by smaller revaluation deficit.
Magnificent Hotel Investments (71.09% owned) swung to a HK$14.40 million profit from a HK$15.20 million loss, benefitting from stronger room demand, lower financing costs (-30%) and reduced operating expenses.
Total assets stood at HK$8.83 billion (31 Dec 2025: HK$8.95 billion). Net current liabilities amounted to HK$24.56 million, while equity attributable to shareholders remained broadly stable at HK$6.89 billion.
Management cautions that ongoing economic softness in mainland China, subdued visitor spending and weaker office demand amid US-China trade tensions may weigh on hotel and rental performance. Cost controls and revenue enhancement initiatives will remain priorities as the group advances the 216-room Wood Street Hotel refurbishment in London.