EXTRAWELL PHAR(00858) issues a profit warning, expecting to incur a loss of at least HK$950 million for the year, a turnaround from profit to loss compared to the previous year.

EXTRAWELL PHAR(00858) announced that the group is expected to record a loss of at least HK$950 million for the year ending March 31, 2026, compared to a profit for the year ending March 31, 2025. The expected reversal from profit to loss is mainly due to several non-cash items, including (i) unrealized losses of approximately HK$800 million to HK$850 million on investments in convertible bonds issued by STARCOIN GROUP Limited (whose shares were suspended from trading on the Stock Exchange on May 6, 2026), while the same project recorded fair value gains in the corresponding period last year; and (ii) impairment provisions totaling approximately HK$140 million on the equity investment in a joint venture company and on loans receivable from that joint venture company. The performance of the group's operating segments remains stable for the year ending March 31, 2026.