CHINA ENV RES (01130) issues profit warning, expects annual consolidated loss to decrease by no less than 80% year-on-year.

CHINA ENV RES (01130) has issued an announcement, expecting that the unaudited consolidated loss of the Group for the year ended 30 June 2026 will decrease by no less than 80% compared with the loss of approximately HK$42.9 million for the same period in 2025. The Board considers that the decrease in loss was attributable to the combined effect of the following factors for the year ended 30 June 2026: (i) both revenue and gross profit increased, rising to approximately HK$148 million and approximately HK$23.4 million, respectively; (ii) other income, gains and losses increased to approximately HK$12.9 million; (iii) administrative and operating expenses decreased to approximately HK$32.2 million; (iv) the fair value gain on investment properties increased to approximately HK$22.7 million; (v) the loss arising from the change in fair value of biological assets less costs to sell increased to approximately HK$8.6 million; (vi) the net gain from the change in fair value of investments measured at fair value through profit or loss decreased to approximately HK$0.3 million; (vii) the provision for impairment loss on receivables increased to approximately HK$8.8 million; (viii) the provision for impairment loss on refundable deposits paid increased to approximately HK$11.0 million; and (ix) the income tax credit decreased to approximately HK$1.8 million.