GRAND FIELD GP (00115) issues a profit warning, expecting that the loss attributable to shareholders for the first half of the year will increase to approximately HKD 18 million - 24 million.

GRAND FIELD GP (00115) announced that the group expects to incur a loss attributable to equity holders of approximately HKD 18 million to HKD 24 million in the first half of 2026, compared to a loss of approximately HKD 6.1 million attributable to equity holders in the same period of 2025. The announcement stated that the expected increase in loss attributable to equity holders is primarily due to the cumulative effects of the following factors: the absence of a one-time gain of approximately HKD 60.6 million from the sale of a subsidiary (i.e., Jiafeng Industrial Limited) confirmed in the first half of 2025; and a decrease in the group's revenue in the first half of 2026 of approximately 60% to about HKD 60.9 million, compared to approximately HKD 148.8 million in the first half of 2025. This is mainly attributed to declining property sales revenue amid a challenging macroeconomic environment and a slow recovery in demand for real estate in China. In addition, the negative impact mentioned above has been partially offset by the following: (a) a significant reduction in the fair value loss of investment properties, down approximately 86%, compared to a fair value loss of about HKD 92.2 million in the first half of 2025; (b) an improvement in the gross profit margin from about 8% in the first half of 2025 to about 24% in the first half of 2026, due to the higher cost base of properties sold in the first half of 2025, whereas the properties sold in the first half of 2026 had a relatively lower valuation basis cost; (c) no impairment losses on sold properties were recorded (1H 2025: approximately HKD 12.7 million); and (d) a nearly 40% overall reduction in the group's selling, distribution, and administrative expenses to about HKD 22.9 million in the first half of 2026, compared to approximately HKD 38.2 million in the first half of 2025, resulting from reduced revenue and the group's ongoing efforts to optimize cost structure and enhance operational efficiency.