NEW TIMES CORP (00166) issued a profit warning, expecting a net loss of approximately 800 million Hong Kong dollars for the fiscal year 2025, an increase compared to the same period last year.

NEW TIMES CORP (00166) announced that the group is expected to incur a net loss of approximately HK$800 million for the financial year ending December 31, 2025 (2025 financial year), compared to a net loss of approximately HK$87.4 million for the year ended December 31, 2024. The expected increase in net loss for the 2025 financial year is mainly attributed to (i) the disposal loss from the sale of oil and gas assets in Argentina (Argentina business) in December 2025; and (ii) no fair value gain was recognized for the investment properties in Canada, compared to a fair value gain of HK$111 million in the previous year. The Board of Directors emphasizes that the majority of the expected loss for the 2025 financial year is mainly due to the accounting treatment of the long-term significant devaluation of the Argentine peso against the Hong Kong dollar, accumulating to approximately 99% from around 0.8 Argentine pesos to 1 Hong Kong dollar in 2007 (equivalent to 6.3 Argentine pesos to 1 US dollar) to around 186.5 Argentine pesos to 1 Hong Kong dollar in December 2025 (equivalent to 1450 Argentine pesos to 1 US dollar). After the sale of the Argentina business, the related accumulated exchange loss of approximately HK$670 million will need to be reclassified from foreign exchange reserve to profit or loss in accordance with Hong Kong Financial Reporting Standards. This loss is non-recurring, non-cash, and one-off in nature, and will not impact the total equity of the group, with no effect on the group's ongoing operating activities.