Far East Holdings International Ltd (FE HLDGS INTL) reported a marked turnaround for the six months ended 30 June 2026, underpinned by a sharp uplift in the fair value of its Hong Kong investment properties.
Revenue and Operating Performance • Revenue grew 16.4% year-on-year to HK$6.39 million, driven entirely by higher rental receipts from the Group’s commercial property portfolio. • Net rental income rose 21.3% to HK$5.47 million after HK$0.92 million of operating costs. • A fair-value gain of HK$28.30 million on investment properties and a HK$0.84 million unrealised gain on listed securities lifted other gains to HK$29.14 million (H1 2025: HK$0.18 million loss). • Finance costs remained heavy at HK$19.37 million, reflecting interest on bank borrowings (HK$5.80 million), a HK$152.70 million shareholder loan (HK$10.60 million) and other loans (HK$2.96 million).
Earnings • Loss attributable to shareholders narrowed to HK$0.01 million (H1 2025: HK$15.30 million loss). • Total comprehensive income reached HK$14.25 million, reversing a HK$17.91 million loss a year earlier. • Basic loss per share improved to 0.01 HK cent from 5.51 HK cents.
Balance Sheet and Liquidity • Cash and deposits stood at HK$0.56 million (31 December 2025: HK$4.95 million). • Interest-bearing bank borrowings declined to HK$290.70 million, secured against an investment property valued at HK$630.00 million. • Other loans increased to HK$43.49 million, with a 15% annual interest rate and maturity on 8 July 2027. • A HK$152.70 million loan from a non-controlling shareholder, bearing 10% interest, matures on 30 April 2027. • Net current liabilities widened to HK$627.27 million; gearing remained extremely high at 171,440%. • Total equity improved to HK$39.77 million (31 December 2025: HK$25.52 million), supported by the investment-property revaluation surplus.
Operational Highlights • The Group’s four Hong Kong properties generated HK$6.39 million in rental income, with the largest contributor, Silver Fortune Plaza, providing HK$5.07 million. • Occupancy initiatives and potential portfolio adjustments remain under review; management continues to seek acquisition or disposal opportunities to enhance returns. • Securities investments amounted to HK$2.88 million, covering one Main Board equity holding.
Capital and Financing Actions • No new equity was issued during the period; the share base remains at 326.74 million shares following the HK$69.55 million rights-issue proceeds received in early 2025. • Interest accrued on shareholder and external loans resulted in HK$68.96 million of current interest payables related to the non-controlling shareholder loan.
Regulatory and Trading Status • Trading in FE HLDGS INTL shares has been suspended since 3 February 2026 after the Stock Exchange upheld a decision that the Company had not maintained sufficient operations under Listing Rule 13.24. The suspension remains in force pending further notice.
Dividend • The Board declared no interim dividend for the period.
Outlook Management expects Hong Kong’s improving economic conditions to support rental growth and continued property revaluation gains. Efforts are focused on enhancing occupancy, exploring property transactions, and diversifying into related services such as property management while addressing liquidity constraints and ongoing trading suspension issues.