CHINA-HK PHOTO (01123) issued a profit warning, expecting that the net profit attributable to shareholders in the mid-term will not exceed 7.5 million Hong Kong dollars.

CHINA-HK PHOTO (01123) announced that for the six months ended September 30, 2024 ("the period"), the group expects that the profit attributable to shareholders will not exceed HK$7.5 million, while for the corresponding six months ended September 30, 2023 ("the same period last year"), the profit attributable to shareholders was approximately HK$28.7 million. The Board of Directors believes that the decrease in profit for the period compared to the same period last year is mainly due to low consumer sentiment, leading to a decrease in revenue and gross profit; the group did not receive tax exemption for the period, whereas in the same period last year, more deferred tax assets were recognized, resulting in tax exemption; impairment loss provisions for financial assets were made due to uncertainty in collecting trade receivables from a customer; and poor performance of some retail stores led to impairment loss provisions for property, plants and equipment, and right-of-use assets. However, the Board of Directors believes that the overall financial condition and operations of the group remain solid.