REGALINT'L (00078) made a profit. Shareholders' consolidated profit is expected to account for about HK$158 million in the first half of the year

According to the Zhitong Finance App, REGALINT'L (00078) issued an announcement. According to Regal Management's preliminary review of the Group's unaudited comprehensive management accounts for the six months ended June 30, 2026 (mid-2026 period), the Group is expected to achieve a consolidated profit attributable to shareholders of approximately HK$158 million in the mid-2026 period, while a loss of HK$677.6 million was recorded in the same period in 2025.

In addition to improvements in the operating performance of its hotel business and reduction in financing costs due to falling interest rates, the Group's profit during the mid-2026 period was mainly due to the proceeds realized from the sale of subsidiaries owning Regal Oriental Hotel in Hong Kong in April 2026. Such subsidiaries were held through Regal Industrial Trust, a listed subsidiary of Regal.

In the mid-2026 period, gross profit from business operations is expected to be approximately HK$373 million, an increase of approximately 19.6% over the comparative amount of HK$3119 million in 2025. The revenue realized from the sale of Regal Oriental Hotel after taking into account benefits is approximately HK$850 million. The Group's operating profit before depreciation, financing costs and taxes is estimated to be approximately HK$1,069 million, compared to HK$85.4 million for the same period last year.

Furthermore, since the Group's hotel properties in Hong Kong are all owned and operated by Regal's subsidiaries, such hotel properties are subject to depreciation to comply with applicable accounting standards. The total depreciation expenses of the Group's hotel portfolio in Hong Kong are expected to be approximately HK$246 million (2025: HK$290.2 million) during the mid-2026 period. Although these depreciation charges had no immediate impact on the Group's cash flow, they had an adverse impact on its financial results.