KWIH Announces 2025 Interim Results - Financial Position Remains Solid with Steady Development of Core Business
(Hong Kong - 21 August 2025) - K. Wah International Holdings Limited (“KWIH” or the “Group”) (Stock Code: 00173) today announced its unaudited interim results for the six months ended 30 June 2025. The Group has maintained steady development and a sound financial position amid market fluctuations, leveraging its robust business strategies and adaptive responses to market changes, laying a solid foundation for future growth.
Mr. Francis Lui, Chairman of KWIH, said,
“During the period under review, the Group continued to execute its sales strategy for premium residential projects. The attributable contracted sales amounted to approximately HK$1.4 billion. As of 30 June 2025, the Group had unrecognised attributable contracted sales of approximately HK$6 billion, which are expected to be recognised within the next one to two years, providing a stable income stream for us. For the period under review, the Group’s attributable revenue totalled approximately HK$7.2 billion, mainly from the property sales of three joint-venture projects in Hong Kong – KT Marina 1, Grand Mayfair, and Villa Garda – that are currently in the process of handover, as well as from Cosmo in Guangzhou and rental income from Shanghai K. Wah Centre, etc. Profit attributable to equity holders and underlying profit stood at approximately HK$100 million, representing a decline from the same period last year due to lower profit margins in some projects. The Board of Directors remains optimistic about the Group’s long-term development prospects and recommends an interim dividend of 2 HK cents per share.
The economic environment continued to be affected by geopolitical tensions and market volatility in the first half of 2025. The Hong Kong property market saw increased activity compared to last year, driven by a low-interest-rate environment and abundant local liquidity. Meanwhile, the property market in the Mainland experienced an adjustment period, with the Central Government reinforcing supportive policies in major cities to stabilise the market. Despite complex market challenges, the Group maintained steady development, supported by prudent financial management, a solid business strategy and flexible market responses. We proactively adapted our sales strategies in response to policy changes and achieved solid sales performances across key projects in Hong Kong and the Mainland.”
Stable sales performance of premium projects
In Hong Kong, stable sales of Grand Victoria, the joint-venture harbourfront project in South West Kowloon, were recorded. As of the end of June 2025, more than 1,350 units, or approximately 95% of the total, had been sold. The sales performance of KT Marina 1 was also stable, with more than 150 units sold during the period under review. The handover of units at KT Marina 1, Grand Mayfair, and Villa Garda commenced this year, providing the market with more premium residential options.
In the Mainland, Cosmopolis, the residential portion of Phase I of Cosmo in Guangzhou, VETTA in Suzhou, and J City in Jiangmen were launched during the period under review, further enhancing the Group’s competitiveness in the Mainland market.
Future launches of quality projects
The Group has launched the first batch of units at Victoria Voyage, a joint-venture project in the Kai Tak runway area, while KABITAT TIN HAU, a solely-owned project located on King’s Road, Tin Hau, is expected to enter the market in the second half of this year. Looking ahead, the Group will continue to launch various premium projects, including the solely-owned project located on Hospital Road, Mid-levels West, and the joint-venture project on Po Shan Road, providing more options to the market. The Group will closely monitor market dynamics and market the launched projects in Hong Kong and the Mainland, including KT Marina 1, Grand Mayfair, Villa Garda in Hong Kong, VETTA in Suzhou, and Cosmo in Guangzhou, to meet demand. Despite uncertainties surrounding market conditions, the Group remains cautiously optimistic about its future development prospects.
Prudent land bank management
KWIH adopts a prudent approach towards maintaining its land bank to ensure sustainable future development. The Group’s current land bank comprises a total attributable gross floor area (“GFA”) of approximately 1.4 million sq. m. across Hong Kong and the Mainland. Moving forward, the Group will continue to focus on the land market to provide a solid foundation for developing premium projects.
Comprehensive investment property portfolio
The Group continues to expand its premium investment property portfolio to enhance its recurring income and cash flow base. As of the end of June 2025, the attributable GFA of the Group's investment property portfolio totalled 310,000 sq. m., with rental income (including hotel operations) amounting to approximately HK$340 million, demonstrating stable profitability. The average occupancy rate for Shanghai K. Wah Centre and EDGE in Shanghai reached approximately 85% and 100%, respectively. Notably, the occupancy rate for J SENSES was nearly 100%, while that of the commercial complex at Twin Peaks and the shops at K. Summit in Hong Kong reached 100%, reflecting strong market recognition of the Group's properties.
Mr. Francis Lui said,
“KWIH has maintained a solid and positive financial position. During the period under review, the Group proactively implemented various debt reduction measures and achieved significant results. As of 30 June 2025, the Group's net gearing ratio remained low at 11%, reflecting a decrease of 1% from the end of last year, providing the Group with ample financial flexibility to address market changes and investment needs. Cash and bank deposits amounted to approximately HK$8.7 billion, with undrawn bank loans of approximately HK$18.7 billion. The Group has robust liquidity and a healthy balance sheet. In the first half of this year, the Group entered into several bilateral loan agreements with a number of banks, with a total amount exceeding HK$2 billion, which proves that the Group’s stable finances have been recognised by the banking sector. With sufficient funds, the Group will continue to respond to market changes prudently and capture investment opportunities at an opportune time.
Looking ahead to the second half of the year, the global economic outlook remains uncertain, with geopolitical risks and market volatility expected to persist. The Group is cautiously optimistic about the medium- to long-term prospects of the real estate market in Hong Kong and the Mainland. Leveraging our solid financial strength, extensive market experience, and flexible development strategies, we will continue to deliver distinctive, premium properties, creating long-term value for customers, shareholders, and society. In the face of challenges, we are confident in navigating the future market environment and seizing new opportunities.”
