CHI HO DEV (08423) issues profit warning. It is estimated that the net comprehensive loss for the mid-term will be approximately HK$20 million to HK$21 million.

CHI HO DEV(08423) announces that the group is expected to incur a comprehensive loss of between HK$20 million and HK$21 million for the six months ending September 30, 2025, compared to a comprehensive net profit of approximately HK$9 million for the six months ending September 30, 2024. The board believes that the expected comprehensive loss for the six months ending September 30, 2025, is mainly due to (i) a provision of approximately HK$14 million recognized under the expected credit loss model for a loan to a joint venture company, (ii) provisions of approximately HK$2 million recognized under the expected credit loss model for trade receivables and contract assets, and (iii) a decrease in profit from mixed projects as well as renovation and construction projects, leading to a decrease in gross profit.