PALIBURG HOLD expects a consolidated interim loss of approximately 613 million yuan

PALIBURG HOLD (00617.HK) announced that for the six months ending June 30, 2025, the group expects to record a consolidated loss attributable to shareholders of approximately HKD 613 million, compared to a loss of HKD 676.3 million in the same period last year.

The group stated that property and hotel operations are its two main businesses. The group primarily engages in property operations in Hong Kong and mainland China. Due to the sluggish real estate market in both regions, revenue from the property segment has decreased compared to the same period in 2024. However, the hotel business conducted through the group's main listed subsidiary, Regal International (00078.HK), continues to perform steadily, contributing increased revenue compared to the previous comparable period.

The group also indicated that after accounting for fair value losses on investment properties and impairment losses on properties held for sale of approximately HKD 201 million, as well as various administrative and other expenses, the group expects to record an operating loss before depreciation, financing costs, and taxes of approximately HKD 25 million (2024: profit of HKD 78 million).

However, it is worth noting that since the group's hotel properties in Hong Kong are owned and operated by the group, the related depreciation expenses are only accrued to comply with applicable standards. For the mid-2025 period, these depreciation expenses are expected to be approximately HKD 335 million (2024: HKD 338.4 million). Although this has no direct impact on the group's cash flow, it has adversely affected the group's financial performance