CHINA ENV RES (01130) issued a profit warning, expecting a year-end audited comprehensive loss to increase by not less than 100% compared to the previous year.

CHINA ENV RES (01130) announced that the expected audited comprehensive loss for the year ending June 30, 2024 is estimated to increase by at least 100% compared to the loss in the same period in 2023, amounting to approximately HK$35.2 million. The Board of Directors believes that the increase in loss is due to the comprehensive impact of the following factors for the year ending June 30, 2024: primarily due to changes in revenue and products, resulting in a gross profit increase of approximately HK$17.7 million; other income reduced to approximately HK$1.9 million; administrative and operating expenses reduced to approximately HK$40.9 million; fair value loss on investment properties increased to approximately HK$17.3 million; fair value changes on biological assets, net of loss on sale costs, increased to approximately HK$38.6 million; fair value changes on investments recognized in profit and loss increased to approximately HK$1.6 million; impairment losses on receivables provision reduced to approximately HK$0.3 million; finance costs increased to approximately HK$6.8 million; and income tax credits increased to approximately HK$10.6 million.