HK Stock Market Move | Capital Airport (00694) fell over 4% in the afternoon, and the pre-tax loss for the whole year narrowed significantly. It is proposed to offset the accumulated losses through the surplus reserve.

In the afternoon, the stock of Capital Airport (00694) fell by more than 4%, falling by 4.07% to 2.83 Hong Kong dollars, with a trading volume of 3165.69 million Hong Kong dollars. On the news front, Capital Airport had previously issued a profit warning, expecting a net loss of 1.35 billion to 1.65 billion Chinese yuan in 2024, a decrease of 2.9% to 20.6% year-on-year; pre-tax loss of 600 million to 700 million Chinese yuan, a decrease of 59.3% to 65.1% year-on-year. Despite the continuous recovery in the aviation market demand, the large increase in income tax expense due to the reversal of deferred tax assets further expands the net loss. This will be Capital Airport's fifth consecutive year of losses, with total accumulated losses exceeding one hundred billion yuan over five years. It is worth noting that according to the company's proposed loss compensation plan, the board of directors recommends using 2.991 billion yuan from any surplus public reserves to fully offset the accumulated losses as of December 31, 2023, in accordance with relevant provisions of the Chinese Company Law and the company's articles of association, the loss offset plan must be approved by the shareholders' meeting before implementation. Zhongjin Securities stated that this move may contribute to the implementation of a profit distribution policy in the future.