LHN Group's net profit plummeted 83% to 5.9 million yuan in the second half of the year | Lianhe Zaobao
LHN's net profit in the second half of the fiscal year 2025 fell by 82.7% year-on-year to 5.9 million yuan, with an annual net profit decline of 57.6% to 20.1 million yuan. Nevertheless, annual revenue grew by 8.6% to 131.5 million yuan, mainly benefiting from real estate development and facility management businesses. Adjusted net profit increased by 33.4% to 45.7 million yuan, gross profit grew by 21.5% to 75.6 million yuan, and gross profit margin improved to 57.5%
Real estate management service company LHN Group reported a year-on-year net profit drop of 82.7% to HKD 5.9 million for the second half of the fiscal year 2025 as of the end of September, while revenue fell 8.4% to HKD 60.9 million. Its net profit for the second half of the fiscal year 2024 was HKD 34.3 million.
This resulted in a significant year-on-year decline of 57.6% in the group's net profit for the entire fiscal year 2025, down to HKD 20.1 million, while revenue still increased by 8.6% to HKD 131.5 million.
The mainboard-listed company announced its performance after the market closed on Friday (November 28), stating that excluding one-off expenses such as net fair value losses on investment properties and listing expenses related to subsidiary disposals, the group's adjusted net profit increased by 33.4% to HKD 45.7 million.
The group's annual revenue growth was mainly attributed to new income sources from real estate development and steady growth in facilities management. The group's gross profit (pre-tax profit) for the fiscal year 2025 increased by 21.5% to HKD 75.6 million, with a gross profit margin rising by 6.1 percentage points to 57.5%.
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The board of directors proposed a final dividend of HKD 0.01 per share to be distributed on March 6, 2026, and a special dividend of HKD 0.02 per share to be distributed on April 10, 2026, with the stock registration deadline set for February 24, 2026. Its total annual dividend per share increased by 33.3% to HKD 0.04.
LHN Group Executive Chairman Lin Longtian said, "We are pleased to announce this robust fiscal year performance, with significant growth in gross profit and a notable increase in gross profit margin." "Looking ahead, our focus is very clear. We have developed a clear plan to expand the number of guest rooms at Coliwoo to nearly 4,000 by 2026 to meet the strong demand in the residential market. Our real estate development, facility management, and energy businesses are set to grow further, and we are confident in our ability to continue creating sustainable long-term value for our shareholders."
LHN's stock price rose 0.75% on Friday, closing at HKD 0.67
