Anning Holdings (00128) announces a profit, with an expected mid-term net profit attributable to shareholders of about HK$8 million, a significant turnaround from a loss to a profit year-on-year.

According to the Zhixin Financial APP, Anning Holdings (00128) announced that it is expected to achieve a profit attributable to shareholders of approximately HK$8 million for the six months ending on June 30, 2025, compared to a loss attributable to shareholders of HK$14.2 million in the same period last year, a significant turnaround from loss to profit. The expected improvement in financial performance is mainly attributed to the following factors: - The reduced losses of the fashion retail business Shiyun Limited (Shiyun), mainly due to the sale of old inventory reversing previous years' inventory provisions, reduced inventory and reduced provisions, as well as reduced operating expenses; - No related losses from the vacation center and club business (Xianda Countryside Club) as this business ceased operations in mid-June 2024, generating a loss of HK$6.1 million for the six months ending June 30, 2024; and - Increased net gains from the group's investment portfolio, mainly due to the increase in fair value of private equity fund investments, benefiting from the recovery of stock markets where some of the fund's investments are held.