Hong Kong – Kai Yuan Holdings Limited reported a net loss attributable to shareholders of HK$127.53 million for the year ended 31 December 2025, reversing the prior-year profit of HK$35.85 million. Basic and diluted loss per share stood at HK1.00 cent, compared with earnings of HK0.28 cent in 2024.

Revenue contracted 40.67 % to HK$192.03 million, dragged down by the partial closure of the group’s flagship Paris Marriott Hotel Champs-Élysées during phase-two renovation of 112 guest rooms and related facilities. Gross profit shrank to HK$7.13 million from HK$86.69 million, while gross margin fell to 3.7 % from 26.8 %.

Key profit-erosion factors included: • HK$63.86 million impairment on a loan to 37.13 %-owned Beijing Chemical Reaction Engineering Science & Technology Co., Ltd. following its court-approved restructuring. • Finance costs climbing 58.7 % to HK$77.66 million after the 2024 renewal of a EUR175 million bank loan.

SEGMENT PERFORMANCE • Hotel operation generated all group revenue, but posted a segment loss of HK$85.48 million versus a HK$21.62 million profit a year earlier. Hotel occupancy dropped to 40.0 % (2024: 82.2 %), and revenue per available room slid to €287 from €472, although the average room rate rose 24.9 % to €718. • The money-lending unit remained dormant, recording no revenue and a segment loss of HK$1.00 million, broadly flat year-on-year.

BALANCE SHEET AND LIQUIDITY Total assets increased 7.4 % to HK$3.72 billion, mainly on euro appreciation and reclassification of the associate loan to non-current assets. Cash and cash equivalents declined to HK$829.88 million (2024: HK$994.47 million). Interest-bearing bank borrowings expanded to HK$1.58 billion, lifting the gearing ratio to 42.3 % (2024: 39.8 %). Net assets edged up 0.9 % to HK$1.89 billion.

CAPITAL EXPENDITURE Phase-two renovations at the Paris Marriott Hotel were largely completed by year-end, restoring room inventory; roof works and electrical upgrades will continue into 2026. Management noted an immediate pickup in room rates and guest satisfaction post-renovation but warned of headwinds from higher European costs, geopolitical tensions and evolving French climate regulations.

DIVIDEND The board declared no final dividend for 2025 (2024: nil).

OUTLOOK Kai Yuan Holdings plans to focus on optimising hotel operations post-renovation, closely monitor the performance of its associate amid restructuring, and selectively evaluate new investment opportunities while maintaining a conservative treasury stance.