ZHONGZHENG INTL (00943) issued a profit warning, expecting a comprehensive loss attributable to shareholders of HK$85 million to HK$95 million in the first half of 2024/25.

ZHONGZHENG INTL (00943) announced that the group is expected to record a comprehensive loss attributable to owners of the company in the six months ending December 31, 2024 (first half of 2024/25) of HK$85 million to HK$95 million, compared to approximately HK$694 million in the six months ending December 31, 2023 (first half of 2023/24). The expected loss includes a loss from continuing operations attributable to owners of the company of approximately HK$36.9 million (2023/24: HK$20.5 million) and a loss from discontinued operations of approximately HK$52.2 million (2023/24: HK$673.7 million). The increase in the loss from continuing operations attributable to owners of the company in the first half of 2024/25 was mainly due to an impairment loss of approximately HK$16.1 million on other receivables (2023/24: Nil) and an impairment loss of approximately HK$2.6 million on loans and interest receivables (2023/24: Nil). These impairment items are non-cash items, and their value is based on expected credit loss assessments by independent valuers appointed by the company (yet to be finalized). Apart from the impairment items mentioned above, the group's continuing operations showed improvement in the first half of 2024/25 with revenue of approximately HK$64 million (2023/24: HK$47.3 million) and gross profit of approximately HK$16.3 million (2023/24: HK$14.2 million).