WANG ON GROUP (01222) issues positive profit alert, expecting interim profit attributable to shareholders of not less than HK$80 million, turning from loss to profit year-on-year.

WANG ON GROUP (01222) issued an announcement. Based on the preliminary assessment made by the Board after reviewing the draft unaudited consolidated management accounts of the Group for the six months ended 30 September 2026 (the "Review Period") and the information currently available to the Board, the Group is expected to record a profit attributable to owners of the parent of not less than HK$80 million for the Review Period, as compared to a loss attributable to owners of the parent of approximately HK$355 million for the six months ended 30 September 2025 (the "Corresponding Period"). The Board considers that the expected turnaround from loss to profit is primarily attributable to the following factors: (1) selling and distribution expenses decreased from approximately HK$249 million for the Corresponding Period to approximately HK$175 million for the Review Period, consistent with the decrease in revenue recognized from the sale of properties from approximately HK$597 million for the Corresponding Period to approximately HK$52.9 million for the Review Period, due to a decrease in the number of property units delivered to buyers during the Review Period; (2) no loss of approximately HK$208 million arising from the disposal of the Group's 20% equity interest in certain joint ventures holding student dormitory projects was recognized (such loss was recognized in the Corresponding Period); (3) a one-off and non-cash gain of approximately HK$286 million was recognized arising from the waiver (as defined below), of which approximately HK$150 million was attributable to owners of the parent; and (4) a non-cash reversal of write-down of properties under development of approximately HK$50 million was recognized during the Review Period, whereas a write-down of properties held for sale of approximately HK$32.4 million was recognized in the Corresponding Period, mainly reflecting an improvement in the estimated net realizable value of the relevant property projects, partially offset by a decrease in the Group's share of profits of joint ventures and associates from approximately HK$60.7 million for the Corresponding Period to approximately HK$22.3 million for the Review Period.