SHENZHEN INVEST (00604) issues profit warning, expecting a significant increase in comprehensive loss attributable to equity shareholders in the first half of the year to approximately HK$2.5-2.7 billion.

Shenzhen Invest (00604) announced that it has recorded an impairment loss of approximately HK$1.3 billion on its equity interest in its Hong Kong-listed associate, Road King Infra Construction Limited (01098), as at June 30, 2025. The group is expected to report a comprehensive loss attributable to equity shareholders of approximately HK$2.5 billion to HK$2.7 billion for the first half of 2025, compared to a comprehensive loss of approximately HK$1.1 billion for the same period in 2024. The announcement stated that the significant increase in the expected net loss attributable to equity shareholders is mainly due to the recognition of a substantial impairment loss on Road King Infra during the period, as well as an increase in the group's share of losses from Road King Infra. Sufficient impairment provisions have been made for the long-term equity investment in Road King Infra, and its performance is not expected to have a significant negative impact on the group going forward.