Midland Holdings Limited · HKEX:1200
Midland — H1 2025 Earnings Presentation
42 slides from Midland's earnings presentation, August 2025
Slide 1: Midland Holdings 2025 Interim Results
MIDLAND HOLDINGS 2025 Interim Results
Slide 2: Disclaimer Statement
MIDLAND-Disclaimer Statement Disclaimer Statement The information and materials contained in this document (the “Materials”) are general in nature and for internal circulation and reference only. Whilst reasonable care has been taken in preparing the Materials, no representation or warranty of any k
Slide 3: Agenda
MIDLAND-Agenda Agenda Financial Highlights Business Overview Prospects Q&A 3
Slide 4: 2025 Interim Results Highlights
2025 Interim Results Highlights 4
Slide 5: 2025 Interim Results Highlights
MIDLAND-Financial Highlights 2025 Interim Results Highlights 1H 2025 1H 2024 YoY (HK$’M) (HK$’M) Revenues 2,518 3,319 -24% Operating Costs* 2,346 3,111 -25% Operating Profit 172 208 -17% Profit for the Period 151 174 -13% * Excluded other income and gains on disposal of properties, but included the
Slide 6: Reasons for the Profit Decline
MIDLAND-Financial Highlights Reasons for the Profit Decline Drop in revenues and profit • Revenues down 24% Reasons for the Decline 1 Lack of major property policy changes in the Interim Period (2) the turnaround of the Group’s operatins in Mainland China following the implementation of a series of
Slide 7: Key Financial Highlights – Revenue
MIDLAND-Financial Highlights Key Financial Highlights – Revenue Interim 2025 vs 2024 • Revenues from the HK residential market decreased while that from Mainland operation (agency fee only) increased • New Home sector continued to be major driver Primary homes Secondary homes Rental China properties
Slide 8: Changes in Costs
MIDLAND-Financial Highlights Frontline Staff Salaries Changes in Costs (HK$’000) HK$ 239,473 HK$ 252,863 Increase in the average Advertisements & Promotions + 5.6 % number of frontline YoY (HK$’000) staff in Hong Kong HK$ 49,741 HK$ 45,350 Dropped in both digital and 1H 2024 1H 2025 - 8.8 % traditio
Slide 9: Changes in Costs
MIDLAND-Financial Highlights Changes in Costs Impairment of Receivables Rebates: To Customers (HK$’000) (HK$’000) - There was positive HK$ 13,395 progress in the recovery HK$ 1,193,502 - Drop in revenue from of receivables which HK$ 812,155 the primary home - 45.7 % provision had been - 32.0 % secto
Slide 10: HK Operation: Negotiations on Leases
MIDLAND-Financial Highlights HK Operation : Negotiations on Leases Negotiated favorable leasing terms Closed Relocation Renewed with Rental Increase Renewed with No Change in Rent Renewed with Rental Reduction 100% 2.9% 1.3% 6.0% 7.1% 7.7% 5.6% 8.5% 11.4% 11.7% 16.0% 11.8% 12.9% 27.3% 26.3% 15.7% 26
Slide 11: Stable Net Cash
MIDLAND-Financial Highlights Stable Net Cash Dec 2024 Jun 2025 ($’M) 711 Cash 722 0 Bank Loans + Borrowings 0 15 Receipt From Customers 30 Net Cash 696 and Bank Balance 692 11
Slide 12: Business Overview
>. Business Overview
Slide 13: Gross Commission Rate
1.70% *Local Market 1.48% 1.64% 2.32% 2.41% 2.25% MIDLAND-Business Overview 2.25% 2.24% 2.43% 2.71% 3.20% 2.88% 3.01% 3.79% 3.38% 3.42% 4.12% As a % of New Property Price 4.66% Gross Commission Rate* 4.01% 4.22% 6.09% 7.25% 6.36% 1.60% 1.64% 1.67% 1.62% 1.59% 1.62% 1.52% 1.49% 1.49% 1.50% 1.52% 1.48
Slide 14: Stable in Scale
MIDLAND-Business Overview Stable in Scale Number of Local Branches Number of Staff in HK (Not including Midland ICI) (Not including Midland ICI) 450 7,000 406 5,721 386 386 5,621 370 400 362 358 6,000 348 5,026 5,023 4,910 4,753 4,683 320 350 317 311 4,445 4,416 304 4,365 297 4,271 4,266 4,236 5,000
Slide 15: Virtually, no change in size
50 100 150 200 250 300 350 0 273 189 224 285 282 258 MIDLAND-Business Overview 322 230 254 269 296 277 273 262 264 256 245 223 209 212 Number of Branches in China 190 134 136 82 Virtually, no change in size 60 50 46 50 49 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 3,947 2,513 3,443 3,443 2,964 3,83
Slide 16: Prospects
Prospects
Slide 17: Market Stayed active even without big policy change
MIDLAND-Property Update Market Stayed active even without big policy change No. of Primary* Transactions No. of Secondary** Transactions 18,000 70,000 16,198 15,536 60,332 16,000 14,223 60,000 14,000 50,000 46,903 12,000 10,329 40,734 9,312 40,000 36,974 36,268 10,000 8,821 8,000 30,000 21,382 6,000
Slide 18: Market Remained Volatile
200 400 600 800 1,000 1,200 1,400 1,600 0 01/01/24 - 07/01/24 08/01 - 14/01 15/01 - 21/01 22/01 - 28/01 29/01 - 04/02 05/02 - 11/02 12/02 - 18/02 19/02 - 25/02 64 * Announcement date 26/02 - 03/03 591 measures 04/03 - 10/03 1,145 11/03 - 17/03 18/03 - 24/03 demand side 25/03 - 31/03 management 28th
Slide 19: Home Sector: Volume up, Value down
MIDLAND-Property Update Home Sector : Volume up, Value down First half of 2024 First half of 2025 Change Primary Sales 8,608 9,312 +8.2% Volume Primary Sales $105.0b $84.2b -19.8% Value Secondary Sales 20,927 21,382 +2.2% Volume* Secondary Sales $138.2b $138.6b +0.3% Value* Primary transaction volum
Slide 20: Change in primary sales transaction mix in 2025
MIDLAND-Property Update Change in primary sales transaction mix in 2025 First half of 2024 First half of 2025 Change <= $4 Million 331 1,345 +306.3% > $4 Million 8,273 7,961 -3.8% The Budget 25/26: Stamp duty for properties that cost HK$4 million or below is lowered to HK$100 Primary transaction vol
Slide 21: Multiple Properties Buyers
MIDLAND-Property Update Multiple Properties Buyers Number of Multiple Properties Buyers Number of Units bought by Multiple Properties Buyers 1,000 2,500 913 2,279 900 800 2,000 700 600 Increased by 1,500 Increased by 11.7 times 13.2 times 500 400 1,000 300 200 500 72 161 100 0 0 17 months before rem
Slide 22: Buy to Let
MIDLAND-Property Update Buy to Let Rental Yields of the tier one Cities 4% 3.7% 3% 2% 1.81% 1.75% 1.58% 1.61% 1% 0% Beijing Shanghai Guangzhou Shenzhen Hong Kong 22
Slide 23: Midland Property Rent Chart
Midland Property Rent Chart (HK$/Sq. ft.) (in terms of Saleable area) *Provisional Figures 28 29 30 31 32 33 35 36 37 38 39 40 34 3/17 Source: Midland Research Centre 5/17 7/17 MIDLAND-Property Update 9/17 11/17 1/18 3/18 5/18 7/18 9/18 11/18 1/19 3/19 5/19 7/19 7/19 38.33 9/19 Strong Rental Market
Slide 24: Number of Student Visas
MIDLAND-Property Update Number of Student Visas Statistics on Student Visa / Entry Permit Approved 74,466 62,079 46,821 43,732 41,895 38,728 35,330 32,648 29,270 2016 2017 2018 2019 2020 2021 2022 2023 2024 The quota for non-local students studying in the eight subsided Universities is doubled in 20
Slide 25: Talents Recruitment Programs
MIDLAND-Property Update TALENTS RECRUITMENT PROGRAMS (Statistics on applications approved) 150,000 General Employment Policy 138,980 Quality Migrant Admission Scheme 135,049 Admission Scheme for Mainland Talents and Professionals Technology Talent Admission Scheme 120,000 Immigration Arrangements fo
Slide 26: Rental yield has significantly improved
MIDLAND-Property Update Rental yield has significantly improved Mortgage rates vs Yields of Class A Private Residential Units (saleable area less than 40 m2) 4.5% 4.0% 6/25 3.5% 3.7% 3.0% 2.5% 7/25 2.44% 2.0% 1.5% 1.0% Yields of Class A Private Residential Units mReferral Mortgage Index (MMI) 0.5% 0
Slide 27: If Hibor resumes downward trend, local demand may strengthen
MIDLAND-Property Update If Hibor resumes downward trend, local demand may strengthen 6.00% 5.00% 4.00% 3.00% 2.84%* 2.00% 1.00% 0.00% 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 One-month Hong Kong interbank offered rate (Hibor) * As of 21.8.2025 Source: The Hong Kong Associati
Slide 28: Mortgage rates still lower than the recent peak
MIDLAND-Property Update Mortgage rates still lower than the recent peak Mortgage rates 4.5% 4.0% 4/25 3.54% 3.5% 3.0% 2.5% 7/25 2.44% 2.0% 6/25 2.05% 1.5% 1.0% mReferral Mortgage Index (MMI) 0.5% 0.0% 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Source: Rating and Valuation Department, mReferral 28
Slide 29: Local Demand picked up while Mainlanders' Demand remained stable
MIDLAND-Property Update Local Demand picked up while Mainlanders’ Demand remained stable YOY* Value YOY* Value +200.0% Primary +200.0% Secondary ‘24 v ‘23 +170.6% +150.0% +150.0% +100.0% +100.0% ‘24 v ’23 +50.0% ’25 v ‘24 +50.0% +37.1% +26.0% ’25 v ‘24 ’25 v ‘24 +4.3% +2.7% 0.0% 0.0% ’25 v ‘24 ‘24 v
Slide 30: Mainland Buyers Remained Stable (Volume)
MIDLAND-Property Update Mainland Buyers Remained Stable (Volume) Volume of properties bought by Mainlander Buyers and their share in the first 7 months of each year Ratio 23.1% 21.7% No. of units (P: 39.9%) 25% Mainlanders Mainlanders (Secondary) Mainlanders (Primary) Mainlander % (P: 33.2%) 10000 (
Slide 31: Mainland Buyers Remained Stable (Value)
MIDLAND-Property Update Mainland Buyers Remained Stable (Value) Value of the properties bought by Mainlander Buyers and their share in the first 7 months of each year Ratio HK$ billion 40% Mainlanders Mainlanders (Secondary) Mainlanders (Primary) Mainlander % 33.6% 120 (P: 52.0%) 29.6% 35% (S: 21.6%
Slide 32: Cutting Supply
MIDLAND-Property Update Cutting Supply Financial Year Potential Land Supply Actual 2021-22 16,530 18,930 2022-23 17,940 16,050 2023-24 20,550 15,410 2024-25 15,150 10,030 2025-26 13,700 6,000 (First Half) Source: Development Bureau 32
Slide 33: Price Gap Between New and Old
Price Gap Between New and Old -15% 15% 30% 45% 0% *Provisional Figures 05 Q1 Q2 Q3 Q4 Source: Midland Research Centre 06 Q1 Q2 Q3 MIDLAND-Property Update Q4 07 Q1 Q2 Q3 Q4 08 Q1 Q2 Q3 Q4 09 Q1 Q2 Q3 Q4 10 Q1 Q2 Q3 Q4 11 Q1 Q2 Q3 Q4 12 Q1 Q2 Q3 Volume-driven Not Price Q4 13 Q1 Q2 Q3 Q4 14 Q1 Q2 Q3 Q4
Slide 34: Property Prices have finally Stabilized
120 130 140 150 160 170 180 8/16 * As of 18.8.2025 10/16 12/16 2/17 4/17 Source: Midland Research Centre 6/17 MIDLAND-Property Update 8/17 10/17 12/17 2/18 4/18 6/18 8/18 10/18 12/18 2/19 4/19 6/19 8/19 10/19 12/19 2/20 4/20 6/20 8/20 10/20 12/20 2/21 4/21 6/21 8/21 10/21 12/21 2/22 Property Prices
Slide 35: Underlying supply may have peaked off
35 2025 Q2 101,000 10,000 27,000 64,000 2025 Q1 105,000 12,000 28,000 65,000 2024 Q4 107,000 12,000 27,000 68,000 2024 Q3 108,000 10,000 21,000 77,000 2024 Q2 109,000 13,000 19,000 77,000 2024 Q1 112,000 19,000 21,000 72,000 2023 Q4 109,000 18,000 20,000 71,000 2023 Q3 107,000 20,000 18,000 68,000 2
Slide 36: Improving Sale-through Rate
MIDLAND-Property Update Improving Sale-through Rate No. of Units Rate 30,000 No. of units launched 80% No. of units sold among the projects launched in that year 69.9% Sell-through Rate 70% 64.2% 25,000 60.5% 57.8% 60% 53.5% 20,000 18,585 47.7% 50% 15,010 14,119 15,000 13,146 13,280 40% 11,237 30% 9
Slide 37: A Change in Mix of First-Hand Sales
MIDLAND-Property Update A Change in Mix of First-Hand Sales 60% 54.4% 54.7% 50% 45.6% 45.3% (-9.1pp) 40% 30% 20% 10% 0% 1H 2024 1H 2025 Newly launched Already launched in previous years Primary transaction volume based on the information in Sales of First-hand Residential Properties Electronic Platf
Slide 38: Locations of the Tertiary Education Institutions
MIDLAND-Property Update Locations of the Tertiary Education Institutions Education University of Hong Kong Chinese University of Hong Kong Hang Seng University of Hong Kong Lingnan University Hong Kong Chu Hong Kong Baptist Shatin Hai College University Tai City University Wai of Hong Kong Kai Tak T
Slide 39: Reasons for mainlanders coming to Hong Kong
MIDLAND-Property Update Reasons for mainlanders coming to Hong Kong Power of Hong Kong Passports – Visa free access to 173 countries and territories Freedom of Capital Low Tax Regime World Class Infrastructure Education 39
Slide 40: Education Hub
MIDLAND-Property Update Education Hub World’s Top 100 Universities Top 100 (2025) Top 100 (2015) 2024 Top 100 IB Schools (Exam Scores) 5 21 4 3 11 2 2 2 2 2 1 1 1 1 1 0 0 0 0 HONG KONG SEOUL SHANGHAI BEIJING SINGAPORE HANGZHOU TOKYO INDIA VIETNAM Hong Kong Singapore 40
Slide 41: Number of talents & dependents admitted to Hong Kong
MIDLAND-Property Update Number of talents & dependents admitted to Hong Kong under various talent admission schemes from 1/2023 to 6/2024 Number of talents Number of dependents Total admitted to HK admitted to HK Top Talent Pass Scheme 56,952 61,561 118,513 Quality Migrant Admission Scheme 17,147 30
Slide 42: Thank You
Thank You