Cheuk Nang Holdings (00131) issues profit warning, expecting annual loss attributable to shareholders of approximately HK$980 million to HK$1.1 billion.

Cheuk Nang Holdings (00131) announced that it expects to incur a loss attributable to company shareholders of HK$980 million to HK$1.1 billion for the year ending June 30, 2025, compared to a profit attributable to company shareholders of approximately HK$172 million for the 2024 fiscal year. The change from a profit in the 2024 fiscal year to an expected loss in the 2025 fiscal year is mainly due to the following factors: (i) a decrease in gross profit as there were no sales transactions for the Hong Kong properties; (ii) an increase in fair value loss on investment properties from approximately HK$154 million in the 2024 fiscal year to approximately HK$915 million in the 2025 fiscal year; (iii) a significant increase in administrative expenses from approximately HK$57 million in the 2024 fiscal year to approximately HK$290 million in the 2025 fiscal year, mainly due to provisions for developing properties of approximately HK$166 million; (iv) a decrease in income tax expense as there were no tax provisions for the 2025 fiscal year.