CHEUK NANG HOLD (00131) announced that the group expects to record a loss attributable to equity holders of the company of HK$980 million to HK$1.1 billion for the year ending June 30, 2025, compared to a profit attributable to equity holders of approximately HK$172 million in fiscal year 2024.

The shift from profit in fiscal year 2024 to expected loss in fiscal year 2025 is primarily due to the combined impact of the following factors: (i) reduced gross profit due to no sales transactions of Hong Kong properties; (ii) fair value loss on investment properties increased from approximately HK$154 million in fiscal year 2024 to approximately HK$915 million in fiscal year 2025; (iii) administrative expenses increased significantly from approximately HK$57 million in fiscal year 2024 to approximately HK$290 million in fiscal year 2025, mainly due to provisions for properties under development of approximately HK$166 million; (iv) reduced income tax credit as there was no tax reversal in fiscal year 2025.