HON KWOK LAND (00160) issues profit warning, expecting the net loss attributable to mid-term shareholders to not exceed HK $40 million.

HON KWOK LAND (00160) announced that the group is expected to record a net loss attributable to company owners of not more than HK$ 40 million for the six-month period ending on September 30, 2024. This is a decrease from the net profit attributable to company owners of approximately HK$ 89.1 million for the same period in 2023. The board of directors believes that the expected loss is mainly due to the delay in recognizing property sales revenue from pre-sold units in a residential project located on Beijing South Road in Guangzhou, as the project completion was delayed. This has led to a significant decrease in the group's revenue. However, the completion certificate for the project was successfully obtained on November 4, 2024, and it is expected that sales revenue of approximately RMB 350 million will be recognized as income in the second half of the 2024/2025 financial year and onwards. As of September 30, 2024, the group has incurred approximately HK$ 150 million in fair value loss on investment properties in Hong Kong and mainland China, due to the downward adjustment in the property market in both regions (compared to fair value gains of approximately HK$ 22.2 million in 2023). This fair value loss is non-cash in nature and will not affect the overall financial position of the group.