Hang Lung Properties (0101) said on Wednesday its net profit fell 14 percent year-on-year to HK$912 million in the first half of 2025, as the real estate sector continues to face headwinds in both Hong Kong and mainland China.
Underlying net profit decreased by 9 percent to HK$1.59 billion in the first six months, mainly due to lower operating leasing profits and higher finance costs, according to an exchange filing on Wednesday.
Revenue declined 18.7 percent from a year earlier to HK$4.97 billion, while operating profit slid 5.1 percent to HK$3.26 billion. The company maintained its interim dividend at 12 HK cents per share.
Revenue from property leasing decreased by 3 percent to HK$4.68 billion, as consumption slowdown and the subdued office demand in both Hong Kong and mainland China persisted into 2025.
Hotel revenue rose by 84 percent to HK$129 million, due to the expansion of its hotel portfolio.
Looking ahead, the developer flagged persistent challenges in Hong Kong's retail sector, citing shifts in consumer behavior and macroeconomic pressures, Hang Lung said in an exchange filing.
While inbound tourism has yet to return to pre-pandemic levels, the company noted strong interest among visitors in immersive travel experiences and photo-worthy attractions, aided by government-led promotional campaigns.
The company said it will continue to focus on creating immersive shopping experiences and will look for opportunities to optimize its Hong Kong portfolio through capital recycling.
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