GWPA HOLDINGS (00583) issued a profit warning, expecting a consolidated loss attributable to shareholders of approximately HK$349 million to HK$386 million for the interim period.

GWPA HOLDINGS (00583) announced that the group expects to report an unaudited consolidated loss attributable to shareholders ranging from approximately HKD 349 million to HKD 386 million for the six months ending June 30, 2026, along with an unaudited basic loss per share of approximately HKD 22.27 to HKD 24.62. In comparison, the unaudited consolidated loss attributable to shareholders for the six months ending June 30, 2025, was HKD 280 million, and the unaudited basic loss per share was HKD 17.86. The expected loss during this reporting period, as compared to the same period in 2025, is primarily due to the anticipated fair value loss of approximately HKD 320 million to HKD 334 million arising from the revaluation of the group's investment properties as of June 30, 2026, while the group reported a fair value loss of approximately HKD 89 million for its investment properties as of June 30, 2025. Due to the ongoing downturn in the Hong Kong real estate market, the estimated value of the group's investment properties, primarily composed of commercial properties, has declined. Despite this situation, as the revaluation gains/losses are non-cash in nature and the investment properties held by the group are long-term investment projects aimed at generating stable and recurring rental income and investment returns, this will not have a significant impact on the group's operating cash flow. The overall financial and business condition of the group remains robust.