The Wharf (Holdings) Limited (00004.HK) annual basic net profit increased by 47% to HKD 4.104 billion, with a dividend of HKD 0.2 per share

Wharf Holdings Limited (00004.HK) announced its annual results on March 12. For the year ending December 31, 2025, the group’s underlying net profit increased by 47% to HKD 4.104 billion, mainly reflecting a reduction in development property impairment provisions and lower borrowing costs. After accounting for a revaluation deficit of HKD 3.641 billion on investment properties, the group’s attributable profit was HKD 50 million (2024: loss of HKD 3.224 billion). Year-end net debt was eliminated, and net asset value rose by 7% to HKD 48.01 per share. A second interim dividend of HKD 0.20 per share is proposed.

In 2025, the group’s revenue decreased by 9% to HKD 10.997 billion, and operating profit declined by 10% to HKD 5.068 billion. Income from investment properties fell 3% to HKD 4.493 billion, with operating profit down 4% to HKD 2.909 billion, due to continued softness in mainland China rents. Revenue from development properties dropped 39% to HKD 1.367 billion, with operating profit plunging 78% to HKD 103 million, as sales in mainland China continued to shrink, especially in non-residential properties, which constitute the majority of the group’s remaining inventory. Hotel revenue increased 6% to HKD 656 million, but the market in mainland China remained soft. Despite narrowing losses at the two new hotels in Changsha—the Park Hyatt and the Marco—operating profit only broke even. Logistics revenue declined 3% to HKD 2.128 billion, with operating profit down 12% to HKD 278 million, mainly due to decreased throughput at the modern container terminal in Hong Kong. Investment operating profit fell 4% to HKD 1.817 billion, primarily due to reduced dividend income.