Emperor International’s full-year net loss narrowed significantly, and it has complied with covenants including repayment and restructuring commitments.

Emperor International (00163) announced its full-year results for the year ended March, reporting a net loss of HK$2.463 billion, narrowing significantly from the HK$4.84 billion loss in the previous year. The group stated that it signed a restructuring deed with the lenders in January 2026, and was granted agreement to defer repayment of principal and default interest during the deed’s effective period, while committing to carry out a debt repayment plan linked to the sale of properties. As of the balance-sheet date, the group had complied with all restructuring undertakings, including repayment requirements; due to the restructuring, the repayment period for related bank borrowings of HK$12.766 billion has been postponed to the fiscal year ending March 2027 or later.

To ensure continued operation, Emperor International said it is actively promoting property sales, including identifying potential buyers, strengthening liquidity and operating cash flow; actively communicating with the lenders to negotiate an extension of the restructuring deed period, strictly complying with the deed’s covenants, and continuing to control costs. After reviewing cash flow forecasts, the directors believe the group has sufficient working capital to meet its financial obligations for at least the next 12 months, and therefore prepared the financial statements on a going-concern basis.

However, the group said there remains significant uncertainty as to whether management can successfully implement the above plans, which depends in particular on the progress of property sales, whether it can continue to comply with the restructuring deed, and whether it can reach extension agreements with the lenders.

Emperor International’s performance improved last year. The loss for the period narrowed to HK$2.463 billion, mainly because uncertainty in Hong Kong’s real estate market led to declines in both the net realizable value of development properties held for sale and the fair value of investment properties. Revenue for the past year increased by 41% year-on-year to HK$1.941 billion. Fair value loss on investment properties was HK$2.056 billion. Core profit before finance costs, taxes, depreciation, fair value losses, and impairment losses was HK$450 million.

As at March 31, the group had cash on hand of HK$1.27 billion, up significantly by HK$630 million from the same period last year. Total bank borrowings were HK$14.6 billion, down HK$2.0 billion from the same period last year. Of these, bank borrowings due within one year fell sharply to HK$1.829 billion, while bank borrowings due after one year increased to HK$127.6 billion.