ITC PROPERTIES (00199) issues a profit warning. The expected annual net loss attributable to company owners is expected to decrease to no more than 550 million Hong Kong dollars.

ITC Properties (00199) announced that the group expects to incur a net loss attributable to owners of the company of not more than HK$550 million for the financial year ending on March 31, 2026, compared to a net loss of approximately HK$813 million in the same period in 2025. The main factors contributing to the decrease in the expected net loss for this year are as follows: (1) Due to the continued downturn in the property market, especially in the commercial property sector, the group expects to continue to incur property valuation losses in this financial year. However, these expected losses will be lower than those incurred in 2025, for the following reasons: (i) the group expects to generate a gross profit of at least HK$2 million in this financial year, as there will be no impairment losses on property inventory recognized in the cost of sales (HK$346 million in 2025, mainly including impairment losses of HK$256.7 million); and (ii) the decrease in fair value and impairment losses of properties held by certain equity-accounted joint ventures of the group will offset by at least HK$200 million (HK$64.6 million in 2025). (2) The total loss incurred from the sale of stakes in certain equity-accounted joint ventures in 2025 was approximately HK$322 million and this is not expected to recur in the current financial year. (3) In 2025, the group received compensation income of approximately HK$223.5 million related to the recovery of land in Sanya, Hainan Province, in the People's Republic of China, and this is not expected to recur in the current financial year.