HK Stock Market Move | POLY PROPERTY (00119) fell nearly 7% after issuing a profit warning. It is expected to have a loss of 700 to 800 million yuan in the first half of the year, with a change from profit to loss compared to the same period last year.

POLY PROPERTY(00119) fell nearly 7% after issuing a profit warning, dropping by 5.59% to HK$1.52 as of the time of writing, with a trading volume of HK$51.4392 million. On the news front, on July 2nd, POLY PROPERTY announced that it expects to report a loss of 700 to 800 million yuan in the first half of the year, compared to a profit of 208 million yuan in the same period last year, leading to a shift from profit to loss. The expected loss is primarily due to a decrease in revenue recognition and continued pressure in the real estate industry, causing a decline in gross profit margin. The announcement stated that the company completed contract sales totaling 23.2 billion yuan in the first half of the year. Despite facing a loss, the company's overall operating fundamentals remain steady, with improvements in net debt ratio and borrowing costs, maintenance of green indicators for the "three red lines," and ample cash reserves overall.