GW TERROIR-10K (00524) has issued a profit warning, projecting that the group will report an unaudited comprehensive loss attributable to shareholders of between approximately HK$8.8 million and HK$9.8 million for the six months ending June 30, 2026.

This compares to an unaudited comprehensive loss of about HK$6.6 million for the corresponding period in the prior year. The company's board attributes the increased net loss primarily to the combined impact of two key factors.

First, other income recognized during the period is expected to decrease by approximately HK$1.5 million, mainly due to a reduction of about HK$1.1 million in the reversal of provisions for employee costs and professional fees from January to June 2020. Additionally, there was no gain from the early termination of a lease arrangement recognized in the current period, compared to a gain of approximately HK$0.8 million in the prior period. Furthermore, while the current period recorded a reversal of trade payables of about HK$0.3 million, the prior period had no such other income.

Second, finance costs are anticipated to rise by approximately HK$1.0 million, primarily driven by an increase in the average balance of a director's loan during the period.