SOCAM DEV (00983) issued a positive profit alert, anticipating a net profit attributable to shareholders of approximately HKD 28 million to HKD 33 million for the interim period, compared to a loss in the same period last year.

SOCAM DEV (00983) announced that the group expects to record a net profit attributable to holders of the company of approximately HKD 28 million to HKD 33 million for the six months ending June 30, 2026, compared to a net loss of approximately HKD 83 million for the six months ending June 30, 2025, marking a turnaround from loss to profit. The group anticipates achieving profitability by mid-2026, mainly due to: (i) a reduction in losses from property inventory in mainland China due to property sales and impairment (after deducting deferred tax provisions), with losses narrowing from approximately HKD 59 million in mid-2025 to about HKD 5 million in mid-2026, primarily due to the bulk sale of several properties in Tianjin in mid-2025; (ii) a decrease in financial costs of approximately HKD 17 million due to reduced bank borrowings and interest rates by mid-2026; and (iii) foreign exchange gains of approximately HKD 87 million by mid-2026, compared to gains of approximately HKD 34 million in mid-2025, resulting from a 3.8% appreciation of the Renminbi against the Hong Kong Dollar in the first half of 2026, compared to an increase of only 1.5% in the same period of 2025. The performance of the group's main business remains stable compared to mid-2025. The board of directors maintains a cautiously optimistic view on the overall prospects of the group. The groups construction business in Hong Kong (its core business) continues to be profitable, mainly due to its solid strength in the public works sector and maintaining a robust level of contracts. As of the date of this announcement, the group has secured building contracts amounting to approximately HKD 11.6 billion. The group will continue to review its non-core assets and businesses (such reviews may lead to the recognition of impairment losses on investment properties) and seek opportunities to further consolidate the group's financial position to fully leverage its advantages in the Hong Kong construction market.