GWPA HOLDINGS (00583) issues profit warning, expecting a comprehensive loss attributable to shareholders for the year of approximately HK$452 million to HK$500 million.

GWPA HOLDINGS (00583) announced that the Group is expected to record an unaudited comprehensive loss attributable to shareholders of approximately HK$452 million to HK$500 million for the financial year 2025, along with an unaudited basic loss per share of approximately 28.9 HK cents to 31.9 HK cents. This is compared to an audited comprehensive loss of approximately HK$84 million and an audited basic loss per share of 5.4 HK cents for the year ended December 31, 2024. The increase in loss is mainly attributed to: - An expected revaluation loss of approximately HK$203 million to HK$224 million on the investment properties of the Group as at December 31, 2025, compared to a revaluation gain of approximately HK$132 million on the investment properties as at December 31, 2024; and - An expected share of loss of approximately HK$46 million to HK$51 million in a joint venture for the financial year 2025, compared to a share of profit of approximately HK$56 million recorded for the financial year 2024, due to a revaluation loss on the investment properties of the joint venture company in 2025. Due to the continued sluggishness in the Hong Kong real estate market, the valuation of the Group's investment properties (primarily consisting of commercial properties) and those of its joint ventures have declined. Despite these circumstances, as the revaluation gains/losses are non-cash in nature, and the Group's investments in properties and joint ventures are long-term projects aimed at generating stable and recurring rental income and investment returns, they will not have a significant impact on the Group's operational cash flow. The Group's overall financial and business condition remains robust.