C CHENG HLDGS (01486) issued a profit warning, expecting a mid-term loss of approximately HKD 13 million to HKD 15 million, a turnaround from profit to loss compared to the same period last year.

C CHENG HLDGS (01486) announced that the Group expects to record a loss of approximately HKD 13 million to HKD 15 million for the six months ending June 30, 2026, compared to a profit of approximately HKD 51 million for the same period in 2025. This includes a one-time other income of approximately HKD 49 million recognized from exercising usage rights at zero cost (i.e., using the entire office floor of a building for the remaining term of the land use rights). The Board believes that this loss is mainly due to a decrease in revenue resulting from a reduction in the amount of new contracts and supplemental contracts signed during the period, as well as a loss of approximately HKD 2.6 million attributable to an associate. Despite recording a loss during this period, the Group's financial and liquidity position remains stable, with cash and bank balances as of June 30, 2026, maintaining a level similar to that as of December 31, 2025.