According to the Zhitong Finance App, Hop Sang Creative Development Group (00754) announced that the Group expects to achieve a comprehensive loss of not less than HK$12.5 billion for the year ended 31 December 2025, turning profit into loss compared to the same period in 2024. However, the core business has shown strong resilience. The Group's core profit for the year ended December 31, 2025 (net profit after deducting non-recurrent items such as impairment losses and fair value changes) will be no less than HK$1.2 billion. Compared with the same period in 2024, the decline is significantly lower than the overall profit change, reflecting that the Group's core operating capacity has entered the Chinese real estate market into an era of stock development and remains steady.
The results for the year ended December 31, 2025 were affected by the overall decline in the real estate market and the comprehensive transformation of the industry from incremental development to deep stock operation. Property sales revenue declined in stages, inventory in some non-first-tier cities showed signs of depreciation, and at the same time, the fair value of investment properties was adjusted and the sale of an associated company made a loss. The above factors are mainly non-cash and have no real impact on the Group's operating cash flow. The Group's overall financial situation has remained stable, and the debt size has been reduced in an orderly manner according to the plan. At the same time, the debt structure has been further optimized through debt restructuring and/or rollover. Currently, there are no outstanding foreign notes.
For the year ended December 31, 2025, the Group's commercial real estate investment and property management business continued to play a stabilizing role, contributing a reliable and continuous source of profit to the Group, fully demonstrating the Group's long-term strategic value of adjusting and optimizing its business structure from traditional residential development to real estate asset operation and management, and property services.
In the context of China's real estate entering an era of stock and the deep transformation and development of the industry, the Group actively adapts to industry trends, responds positively to national policy guidelines, adheres to a prudent and steady financial tone, continuously promotes business structure upgrading, and focuses on core capacity building and asset operation efficiency. The Group will further optimize global resource allocation, cultivate brand advantages, enhance market competitiveness and recognition, and save momentum for future high-quality development.