Paliburg Holdings (00617) has issued a profit warning, indicating that the group anticipates a consolidated loss attributable to shareholders of approximately HK$210 million for the 2026 interim period. This marks a significant improvement compared to the loss of HK$613.4 million recorded during the same period in 2025.

The company noted that revenue from its property operations, along with the hotel business conducted through its major listed subsidiary, Regal Hotels International Holdings Limited (Regal), has increased during the interim period. This growth was further supported by a reduction in financing costs resulting from lower interest rates.

Additionally, the group recognized a gain of approximately HK$610 million from the beneficial sale of the Regal Oriental Hotel, which was previously owned by Regal Real Estate Investment Trust, a listed subsidiary held through Regal. The transaction was completed in April 2026.

However, these positive factors were partially offset by an impairment loss related to a land development project in Xinjiang, mainland China, involving afforestation. This project, undertaken by another listed subsidiary, Cosmopolitan International Holdings Limited, was adversely affected by recent changes in circumstances. Consequently, the expected consolidated loss for the 2026 interim period is projected to decline sharply from HK$613.4 million in the first half of 2025 to approximately HK$210 million.