CHI HO DEV (08423) issues profit warning, expecting the annual comprehensive loss to increase year-on-year to approximately HK$60 million to HK$65 million.

CHI HO DEV(08423) has announced that it is expected to incur a net comprehensive loss of between HK$60 million and HK$65 million for the financial year ending on March 31, 2026. This is compared to a net comprehensive loss of approximately HK$12.3 million for the financial year ending on March 31, 2025. The net comprehensive loss for the financial year ending on March 31, 2026 is mainly attributed to (i) provision of approximately HK$40 million recognized under the expected credit loss model for a loan to a joint venture entity; (ii) provision (net of reversals) of approximately HK$11 million recognized under the expected credit loss model; and (iii) decreased gross profit from renovation and maintenance projects, reconstruction and addition projects, and decoration projects.