K Wah International (0173) swung to a loss of HK$869.3 million in 2025, compared with HK$335.1 million in net profit from the prior year.
The local developer's underlying loss was HK$1.29 billion before the net of tax fair value change of investment properties for the year, primarily due to the impairment provision on development properties as a consequence of market conditions, and the share of losses of joint ventures, which have negative project margins under price pressure.
It declared a final dividend of 1 HK cent, down 80 percent from a year ago. Together with its interim dividend, its full-year distribution reached 3 HK cents per share, a decline of 66.7 percent.
Revenue dropped 72.4 percent year-on-year to HK$1.98 billion. Contracted sales in the period were HK$5.6 billion, and it had HK$6.5 billion in contracted sales not yet recognized as of the end of December.
For Hong Kong, the developer expected that the residential market recovery is set to extend into 2026, with mass residential prices projected to rise by approximately 5 to 7 percent, supported by stable interest rates, continued demand from mainland buyers, and a normalised supply pipeline.
However, the commercial real estate sector may continue to face headwinds in the city, it added.
Leveraging its strong financial position, K Wah said it will continue to focus on prime projects in key areas of Hong Kong and the mainland's first-tier cities, actively seeking opportunities to capitalise on the market recovery.
