DINGYI GP INV (00508) issues profit warning, expected to incur a net loss of approximately HK$485.3 million in the midterm.

DINGYI GP INV (00508) announced that although the revenue for the six months ended September 30, 2025 increased to approximately HK$252.2 million compared to HK$174.4 million for the six months ended September 30, 2024, the group is expected to incur a net loss of approximately HK$485.3 million for this period, compared to a net profit of approximately HK$27.3 million for the previous period. The significant increase in revenue for this period is mainly due to a surge in sales recognized by the group on properties developed in China during the comparative period. The group's net profit from the previous period has turned into a net loss for this period mainly due to the comprehensive impact of the following: (1) a decrease in gross profit margin from approximately 18% in the previous period to approximately -59% in this period; (2) impairment loss provision for receivables, loans, and interest of approximately HK$20.3 million (previous period: approximately HK$12.5 million); (3) loss of HK$230 million from the derecognition of financial liabilities; (4) impairment loss provision for developing properties and completed properties for sale of approximately HK$40.5 million.