LISI GP HOLD (00526) issues profit warning, expecting a net loss in the mid-term not exceeding 30 million yuan, turning from profit to loss on a year-on-year basis.

LISI GP HOLD (00526) announced that the group is expected to incur a net loss of not more than RMB 30 million for the six months ending September 30, 2024, compared to a net profit of approximately RMB 293 million for the same period last year. The board of directors believes that the decrease in profit is mainly due to the following reasons: (1) in the six months ending September 30, 2023, the group obtained a net pre-tax profit of about RMB 131 million due to the local government of Ningbo City, People's Republic of China, reclaiming land;(2) the group expects to incur valuation losses due to the revaluation of the group's investment properties as of September 30, 2024; and (3) the group anticipates an increase in impairment losses for financial assets and contract assets as of September 30, 2024.