GRAND FIELD GP (00115) has issued a profit warning, projecting a loss attributable to company shareholders of approximately HK$18 million to HK$24 million for the first half of 2026, compared to a loss of about HK$6.1 million in the corresponding period of 2025.

The company attributed the anticipated increase in losses to a combination of factors. Notably, there was no one-time gain of approximately HK$60.6 million recognized in the first half of 2025 from the disposal of a subsidiary, Ka Fung Industrial Limited. Additionally, group revenue for the first half of 2026 is expected to decline by roughly 60% to around HK$60.9 million, down from HK$148.8 million in the same period last year, primarily due to lower property sales revenue amid challenging macroeconomic conditions and the slow recovery of property market demand in China.

These adverse effects were partially offset by several factors. The fair value loss on investment properties decreased significantly by approximately 86%, compared to a loss of about HK$92.2 million in the first half of 2025. The gross profit margin improved to approximately 24% in the first half of 2026, up from around 8% in the prior-year period, as properties sold in the first half of 2025 carried a higher cost base, while those sold in the current period had relatively lower mark-to-market costs. Furthermore, no impairment loss on properties sold was recorded, versus approximately HK$12.7 million in the first half of 2025. Selling, distribution, and administrative expenses also fell by about 40% to roughly HK$22.9 million, compared with HK$38.2 million a year earlier, reflecting reduced revenue and the group's ongoing efforts to optimize its cost structure and enhance operational efficiency.