KAI YUAN HLDGS (01215) announced that the group expects to record a loss attributable to owners of the company of no less than approximately HK$99.96 million for the six months ended June 30, 2025, compared to a profit of approximately HK$7.93 million for the six months ended June 30, 2024.

The shift from profit to loss during the interim period was primarily attributable to: (i) partial closure of Paris Marriott Hotel Champs-Élysées for renovation, resulting in reduced revenue contribution and causing the hotel operating segment to record a gross loss of approximately HK$10.14 million; (ii) increased outstanding amounts related to construction-in-progress assets pledged to the group by an associate company, along with restructuring of the associate, leading to an impairment provision of approximately HK$63.66 million on loans to the associate; (iii) increased financing costs during the interim period due to higher interest rates on the EUR 175 million bank loan renewed in 2024; and (iv) decreased other income and gains due to lower bank deposit interest rates.