REGAL INT'L (00078) announced that the group expects to record a comprehensive loss attributable to shareholders of approximately HK$678 million for the interim period of 2025, compared to a loss of HK$1.5992 billion in the same period of 2024.
The reduction in losses between the two comparative periods is primarily attributable to the fair value performance of the group's financial assets measured at fair value through profit or loss. During the 2024 interim period, these financial assets generated fair value losses of HK$932.6 million, while in the 2025 interim period, these financial assets are expected to achieve fair value gains of approximately HK$7 million.
As detailed in REGAL INT'L's 2024 interim report, the fair value losses on financial assets were mainly related to the group's investments held in Cosmopolitan International Holdings Limited, a fellow listed subsidiary, which have subsequently been written down to a relatively insignificant value.
Additionally, the significant decline in Hong Kong Interbank Offered Rate (HIBOR) since mid-May this year has resulted in lower financing costs for the first six months of 2025 compared to the corresponding period in 2024, contributing to the reduced losses in the reviewed financial performance.
For the 2025 interim period, the group expects to achieve earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately HK$85 million, turning from a loss of HK$734.8 million in the same period of 2024.
Furthermore, as the group's hotel properties in Hong Kong are owned and operated by subsidiaries of REGAL INT'L, these hotel properties are subject to depreciation charges in accordance with applicable accounting standards. For the 2025 interim period, the group expects total depreciation expenses for its Hong Kong hotel portfolio to amount to approximately HK$290 million (2024: HK$291.3 million). While these depreciation charges have no immediate impact on the group's cash flow, they have adversely affected the group's financial performance.