The Group is principally engaged in the businesses of (i) property development, (ii) property investment and (iii) property and carpark management, and mainly focused on three major cities in Mainland China, namely Shenzhen, Guangzhou and Chongqing as well as in Hong Kong and Japan.
The Group's loss attributable to shareholders for the year ended 31-03-2026 amounted to HKD 527.4 million. Basic loss per share was HKD 0.7320. A dividend of HKD 0.01 per share was declared. Turnover amounted to HKD 832 million, a decrease of 17.8% over the same period last year, gross profit margin down 1.0% to 51.5%. (Announcement Date: 29 Jun 2026)
During the year, the Group continued to focus on property development, property investment, property management services and hotel operations in Hong Kong, the Chinese Mainland and Japan.
As part of its macroeconomic policies to further strengthen domestic consumption, the Mainland Government relaxed home purchase restrictions, reduced the minimum down payment ratio and lowered housing loan interest rates to support the real estate market and stimulate housing demand. Residential property transaction volumes showed a gradual recovery. The general market in Guangzhou has been recovering slowly, but our sales of The Riverside in Guangzhou remained stable, supported by its prime location and premium quality.
During the year, the number of visitor arrivals to Hong Kong and overnight stays continued to increase. The Group’s hotel and serviced apartment operations in Central, Hong Kong have delivered strong revenue growth since its reopening in January 2026.
The leasing markets in Hong Kong and the Chinese Mainland remained challenging. Driven by contributions from its newly built retail and office properties in Guangzhou and its newly acquired hotel portfolio in Japan, the Group recorded an increase in rental income despite the prevailing market slowdown. The Group remain confident in the demand for grade A offices as prospective tenants continue their flight to quality towards premium buildings in prime locations. Our unique range of self-developed leasing products such as Hon • Link, Hon • Work and Hon • Cowork that designed to address the evolving needs of modern businesses has been well received in the market since their launch. Each product offering provides tailored workspace solutions that combine flexibility, functionality and premium service quality.
Hon • Link (Custom-Fitted Office Space) delivers bespoke office environments that are carefully customized to meet the unique operational and branding requirements of individual clients, enabling companies to establish a strong corporate identity while optimizing space efficiency. Hon • Work (Premium Business Center) offers a fully serviced business center experience, providing high-quality office facilities, professional support services, and a prestigious business setting ideal for established enterprises seeking convenience and scalability. Meanwhile, Hon • Cowork (Flexible Micro Office) caters to startups, entrepreneurs and agile teams by offering flexible micro-office solutions that prioritize affordability, mobility and collaborative opportunities within a dynamic work environment. Together, these innovative solutions form a comprehensive ecosystem that supports businesses across different growth stages and operational models. Their strong market reception reflects not only the relevance of our offerings but also our commitment to delivering customer-centric, forward-looking workspace solutions that enhance productivity and business performance.
There is no rapid recovery coming.
Instead, we are entering a phase of stabilization. The brutal valuation corrections of the past two years are moderating. Occupancy rates across our portfolio are moving in the right direction. Our new leasing products – Hon • Link, Hon • Work and Hon • Cowork – are gaining attraction in the market because they solve real problems for real tenants.
Our priorities are straight forward and deliverable: maintain financial discipline, keep building recurring income, drive occupancy across every asset we own, and recycle capital when we can get good prices. We have a luxury residential development at Repulse Bay completing in 2028 that will be exceptional. We have further Riverside inventory coming to market. We have a portfolio of investment properties that in a normalized environment will generate substantially more income than they do today.
Going forward, I’m optimistic that the Greater Bay Area will keep growing. Technology and data infrastructure will keep attracting capital. Hong Kong, despite its challenges, remains one of the world’s great financial and commercial centers. We own premium assets at the heart of all of this key geography.
Our Managing Director Mr. Donald Lam and his young team are extraordinarily well tuned to both the capital as well as the business markets. And their continuing innovations show our ability to adjust to evolving sentiments.
We will come through this cycle stronger. I am certain of it.
Our shareholders have stood by this Company through thick and thin, and we do not take that loyalty for granted. Therefore, we must occasionally take a longer view and make tough decisions. In light of the current headwinds, the Board will propose a dividend of one cent for the financial year. This decision wasn’t made lightly, but keeping our cash reserves robust and our capital base rock-solid is our highest fiduciary duty to you right now.
Source: Hon Kwok Land Inv (00160) Annual Results Announcement