RELIANCE GLO HL (00723) announced that the group anticipates recording a net profit not exceeding HK$3 million for the first half of 2025, compared to a loss of approximately HK$12 million for the same period ending September 30, 2024. Additionally, the company expects attributable profit to shareholders not exceeding HK$5 million for H1 2025, versus a loss of around HK$8.9 million in H1 2024.

The projected turnaround is primarily attributed to: (i) losses in the timber supply chain business due to weak demand in China's real estate market, geopolitical instability, uncertainty in U.S. tariff policies, margin compression, soaring European operating costs, and impairment losses on certain trade receivables; (ii) losses in the money lending business resulting from reduced loan portfolio size leading to lower income and impairment losses on receivables and foreclosed assets. These were partially offset by (iii) net fair value gains on financial assets at fair value through profit or loss and net gains from the disposal of such assets.