Lippo China Resources Limited (“LIPPO CHINA RES”) reported a turnaround for the six months ended 30 June 2026, posting attributable profit of HK$142.08 million versus a HK$80.35 million loss a year earlier. Earnings per share rebounded to HK$0.15 from a HK$0.09 loss.
Revenue climbed 5.4% to HK$434.39 million, driven by a 21% rise in food manufacturing sales to HK$245.59 million and continued strength in Singapore and Malaysia, which together contributed 54% of total revenue. Gross profit held broadly flat at HK$255.38 million, while the overall margin slipped to 58.8% from 62.3% on higher cost of sales.
A one-off insurance recovery of HK$192.62 million following settlement of earlier litigation underpinned the earnings swing. Administrative and other operating expenses fell 6.5% to HK$284.38 million. Net finance costs eased 7.4% to HK$25.71 million.
Segment performance: • Food businesses recorded a HK$10.67 million operating loss (1H25: HK$2.48 million) despite higher sales, reflecting restaurant closures and softer Hong Kong consumption. • Property investment delivered HK$7.42 million profit, reversing a HK$8.21 million loss after a HK$6.00 million fair-value gain on Hong Kong commercial assets. • Treasury and securities investment contributed HK$8.28 million profit, supported by a HK$6.80 million net fair-value gain; key holdings include GSH Corporation, Amasia CIV and Quantedge Global Fund. • Share of results from associates and joint ventures posted a HK$4.80 million loss, mainly due to TIH Limited, partly offset by Healthway Medical Corporation’s improved contribution.
Financial position remained solid. Total assets stood at HK$3.48 billion with net assets attributable to shareholders of HK$2.02 billion, equating to HK$2.20 per share. Cash and equivalents reached HK$249.41 million, up HK$15.53 million from end-2025. Net current assets rose to HK$209.21 million; current ratio improved to 1.5 from 1.3.
Total bank and other borrowings declined 3.8% to HK$916.07 million. Net gearing (net of non-controlling interests) eased to 42.1%, compared with 48.1% at end-2025.
Capital commitments amounted to HK$153.44 million, primarily for a new food-production line and unlisted investment funds. The board declared no interim dividend.
Management remains “cautiously optimistic”, citing robust GDP growth in Hong Kong and Singapore but noting heightened geopolitical and macroeconomic risks. Focus areas include continued expansion of the food manufacturing footprint, disciplined cost control in restaurant operations, and proactive management of the diversified investment portfolio.