HK Stock Market Move | YUEXIU PROPERTY (00123) fell more than 4% after issuing a profit warning. The company expects its core net profit for the full year to decline by up to 55% year-on-year.

YUEXIU PROPERTY (00123) fell more than 4% after issuing a profit warning, reaching a drop of 4.45% at the time of writing to HK$5.37, with a trading volume of HK$60.6654 million. On the news front, YUEXIU PROPERTY issued a profit warning, expecting a year-on-year decrease of about 65%-70% in net profit for 2024; and a decrease of 50%-55% in core net profit. Based on this, the core net profit of YUEXIU PROPERTY for 2024 is expected to be between RMB 1.57 billion and 1.745 billion. The announcement stated that the decline in profit and core net profit is mainly due to the continuous adjustment of the real estate market, a decrease in gross profit margin from property sales, including an increase in the provision for impairment of development properties and properties held for sale from RMB 1.57 billion in the previous year to RMB 2.27 billion; a new provision for impairment of certain properties, factory buildings and equipment, and right-of-use assets of approximately RMB 1.39 billion; and a pre-tax net revaluation loss of approximately RMB 730 million for commercial properties.