Wharf (0004) swung to a net profit of HK$50 million in 2025, turning the tables on a loss of HK$3.22 billion from the year prior, thanks to the decline of writedowns in investment and development properties.
Its underlying net profit rose 46.7 percent year-on-year to HK$4.1 billion, mainly due to mainland development properties with lower attributable impairment provisions of HK$839 million, down 58.4 percent from a year ago.
The company declared a second interim dividend of 20 HK cents per share, bringing the total distribution for 2025 to 40 HK cents per share, unchanged from 2024.
Revenue decreased by 9.2 percent to nearly HK$11 billion.
Development properties revenue in Hong Kong surged 2.54 times to HK$1.14 billion, with net order book totaling to HK$1.06 billion by year-end.
This came as the city's luxury residential market experienced a nascent recovery amid more positive stock market sentiments and supportive government initiatives, including the enhanced New Capital Investment Entrant Scheme, the company said.
Revenue from the mainland's development properties segment saw a decline of 58 percent to HK$1.36 billion. The company said its available stock has been diminishing after suspending land acquisition from 2019, with remaining inventory dominated by offices.
Looking ahead, the company said Hong Kong's property market is regaining momentum, underpinned by government measures and improving capital markets, while interest rate fluctuations and inventory overhang may continue to pose challenges.
Wharf noted that the tepidly recovering property market, lingering labour market weakness, and capacity imbalances remain downside risks to the economic growth in mainland China, dampening consumer spending and necessitating additional stimulus measures to bolster these sectors.
