Central Development Holdings (SEHK: 00475) has issued a profit alert, forecasting that the group will record a net loss attributable to the company's owners for the current financial year (the year ending March 31, 2026) in the range of approximately HK$25 million to HK$27 million.

This compares to a net loss attributable to owners of approximately HK$19.2 million for the previous financial year ended March 31, 2025.

The anticipated increase in the net loss for the current year is primarily attributed to the combined effect of several factors.

These include a significant decrease in the fair value gain on derivative financial instruments related to convertible bonds, estimated at about HK$1.6 million for this year compared to a gain of roughly HK$14.9 million in the prior year.

Additionally, the group's business revenue for the current year has decreased.

There has also been a reduction in other income, which encompasses lower rental income generated from the group's investment properties during the year.

These negative impacts were partially offset by certain factors, including a reduced fair value loss on investment properties and lower administrative expenses for the current financial year.