WANG ON PPT (01243) Issues Positive Profit Alert, Expects Interim Profit Attributable to Shareholders of Not Less Than HK$150 Million, Turning from Loss to Profit Year-on-Year

WANG ON PPT (01243) announced that the Group expects to record a profit attributable to owners of the parent of not less than HK$150 million for the six months ended 30 September 2026 (the "Period"), compared with a loss attributable to owners of the parent of approximately HK$384 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) Gross loss of approximately HK$16.6 million (representing a gross loss margin of approximately 2.7%) in the Corresponding Period turned into gross profit of approximately HK$16.6 million (representing a gross profit margin of approximately 24.0%) in the Period, mainly due to an improvement in the gross profit margin of properties delivered during the Period and a decrease in related costs; (2) selling and distribution expenses decreased from approximately HK$113 million in the Corresponding Period to approximately HK$15 million in the Period, in line with the decrease in revenue recognized from the sale of properties from approximately HK$591 million in the Corresponding Period to approximately HK$52.9 million in the Period, due to a decrease in the number of property units delivered to buyers during the Period; (3) no loss of approximately HK$208 million was recognized in the Period in respect of the disposal of a 20% equity interest in certain joint ventures of the Group holding student dormitory projects, which was recognized in the Corresponding Period; (4) a one-off and non-cash gain of approximately HK$286 million arising from waivers was recognized, of which approximately HK$200 million was attributable to owners of the parent; (5) and a non-cash reversal of write-down of properties under development of approximately HK$50 million was recognized in the Period, compared with a write-down of properties held for sale of approximately HK$32.4 million recognized in the Corresponding Period, mainly reflecting an improvement in the estimated net realizable value of the relevant property projects; partly offset by the Group's share of profits of joint ventures and associates decreasing from approximately HK$63.6 million in the Corresponding Period to approximately HK$19.5 million in the Period.