CHINA VERED FIN (00245) issues a profit warning, expecting net profit in the first half of the year to drop to no less than 25 million HKD.

CHINA VERED FIN (00245) announced that the group expects to achieve a net profit of not less than HK$25 million in the first half of 2026, compared to a net profit of approximately HK$742.3 million for the same period in 2025. The announcement stated that the expected decrease in earnings is primarily due to (i) a net investment income of not less than HK$50 million, a substantial decline from the significant net investment income of approximately HK$838.5 million for the same period in 2025. This decrease is attributed to the uneven performance of the group's investment portfolio, particularly due to the substantial fluctuation in the share price of eToro Group Limited (Nasdaq: ETOR) since its initial public offering in May 2025, which has had a significant impact on the group's net investment income; (ii) total revenue is expected to decrease compared to the same period in 2025; and (iii) share of losses from associates, mainly due to investment losses, compared to a share of profit of approximately HK$3.9 million for the same period in 2025. The impact of the above factors is expected to be partially offset by reversals of impairment on financial assets, whereas in 2025, an impairment provision of approximately HK$7.4 million was recorded.