ZHONG HUA INT'L Issues Profit Warning, Anticipates Annual Loss Attributable to Shareholders

Stock News
03/20

ZHONG HUA INT'L (01064) has released an announcement indicating that, based on the latest management accounts for the 2025 fiscal year, the Group expects to record a profit of approximately HKD 13 million (unaudited figure). This contrasts with the audited net loss of HKD 79 million reported for the year ended December 31, 2024. The shift to profitability in the current year is primarily attributable to a fair value gain of approximately HKD 31 million (unaudited figure) on an equity interest in a certain entity during the 2025 fiscal year, compared to an audited loss of about HKD 56 million in the 2024 fiscal year. This gain was largely influenced by the appreciation of the Renminbi during the translation process in the 2025 fiscal year. It is important to note that this fair value gain represents a non-cash transaction and has not been realized in the Group's consolidated income statement. After accounting for non-controlling interests, the Group anticipates recording a loss attributable to owners of the company of approximately HKD 15 million (unaudited figure) for the 2025 fiscal year, compared to an audited loss of HKD 46 million in the 2024 fiscal year.

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