KOWLOON DEV's capital-to-debt ratio at the end of June is 100.9%, with 1.7 billion loans maturing within one year

KOWLOON DEV (00034.HK) recently announced its performance, stating that the group's capital adequacy ratio as of the end of June was 100.9%, a decrease of 3.5 percentage points from the end of last year. Total bank loans also slightly decreased by 2% to HKD 18.74 billion, of which HKD 1.709 billion is due for repayment within one year; the company holds cash of HKD 957 million.

The group indicated that sales from its Hong Kong property projects contributed approximately HKD 1.367 billion to cash flow in the first half of the year, mainly from the sales proceeds of Tseung Kwan O Ocean Park. Meanwhile, mainland projects also recorded cash inflows of about HKD 368 million.

The group stated that reducing the capital adequacy ratio is one of its primary financial strategies and has implemented a series of measures, including strategically selling non-core assets totaling over HKD 350 million over the past few years. Additionally, the remaining units of Ocean Park in Hong Kong will be sold, along with the upcoming sales of The Summit in Mid-Levels in the second half of the year and the Clearwater Bay Road project set to be pre-sold next year. Together with pre-sales and sales of several projects in mainland China, it is expected to generate additional cash inflows in the coming years.

Given the current challenging business environment in the real estate industry, the group's large development project on Clearwater Bay Road is in full construction phase, requiring substantial funding; therefore, the group currently finds it necessary to adopt a conservative dividend policy