KAI YUAN HLDGS (01215) issues profit warning, expecting a net loss attributable to shareholders of approximately HK$128 million in 2025, compared to a profit in the same period last year.

KAI YUAN HLDGS (01215) announced that the group is expected to incur a loss attributable to owners of the company of approximately HK$128 million for the year ending December 31, 2025, compared to a profit of approximately HK$35.8 million for the year ended December 31, 2024. The expected loss for the current year is mainly due to the partial closure of the Paris Marriott Hotel Champs-Elysees for renovations during the year, resulting in a decrease in the group's revenue and hotel contribution margin to approximately HK$192 million and HK$7.1 million, respectively (compared to approximately HK$324 million and HK$86.7 million in 2024). Additionally, there was an increase in the outstanding amount related to construction assets pledged to the group by an associate company, and a restructuring of the said company resulted in an impairment provision of approximately HK$63.9 million for the loans to the associate company (compared to none in 2024). The financing costs for the 175 million Eurobank loan renewed in 2024, net of fair value amortization of cash flow hedges, increased to approximately HK$77.7 million (compared to approximately HK$48.9 million in 2024).