SH IND URBAN (00563) issues profit warning, expecting a shareholders' loss of approximately HK$300 million to HK$360 million for the year 2024.

SH IND URBAN (00563) announces that it expects the company's attributable loss to owners for the year ending December 31, 2024 to be between approximately HK$300 million and HK$360 million (compared to a profit of HK$494.6 million for the year ending December 31, 2023). The expected loss for the year ending December 31, 2024 is mainly due to the following reasons: (i) Compared to last year, the gross profit margin is expected to decrease by around 23 to 26 percentage points to about 15% to 18%, mainly due to a decrease in projects with higher gross profit margins delivered during the year; lower selling prices due to market conditions; and impairment losses recognized on certain property projects during the year; (ii) Losses from the revaluation of investment properties for the group for the year ending December 31, 2024 are expected to be between approximately HK$680 million and HK$720 million, while last year's revaluation loss was approximately HK$39.8 million, attributed to the downward adjustment of the property market in mainland China.