GWPA Holdings (00583) announced that the group expects to record an unaudited comprehensive loss attributable to shareholders of approximately HK$266 million to HK$294 million for the six months ended June 30, 2025, along with an unaudited basic loss per share of approximately 16.97 to 18.76 HK cents. This compares to an unaudited comprehensive profit attributable to shareholders of HK$4.52 million and unaudited basic earnings per share of 0.29 HK cents for the six months ended June 30, 2024.

The turnaround from profit to loss compared to the same period in 2024 was primarily due to: (a) the group's investment properties are expected to record revaluation fair value losses of approximately HK$87 million to HK$91 million as of June 30, 2025, while the group recorded investment property fair value gains of approximately HK$79 million as of June 30, 2024; and (b) the group expects to record its share of losses from an associate company of approximately HK$69 million to HK$72 million during the reporting period, compared to its share of profits from an associate company of approximately HK$65 million for the six months ended June 30, 2024. This was due to revaluation fair value losses on the associate company's investment properties and increased finance costs during the reporting period.

The decline in valuation of investment properties (primarily comprising commercial properties) held by the group and its associate companies was attributed to the continued downturn in Hong Kong's real estate market. Despite these circumstances, since the revaluation fair value gains/losses are non-cash in nature, and the group's investment properties and investments in associate companies are long-term investment projects aimed at generating stable and recurring rental income and investment returns, they will not have a material impact on the group's operating cash flow. The group's overall financial and business condition remains robust.