CHINA HONGBAO Forecasts Annual Profit Turnaround, Anticipating Up to Approximately HK$2.3 Million in Net Earnings

Stock News
Jun 08

The company announced that for the financial year ending March 31, 2026, it expects to record a net profit not exceeding approximately HK$2.3 million. This marks a significant reversal from the net loss of about HK$9.7 million reported for the 2025 fiscal year.

The board of directors attributes this shift from a net loss to a net profit primarily to several key factors. These include a substantial increase of roughly HK$34.4 million in gross profit from the internet services segment, and the recognition of a gain of approximately HK$17.5 million arising from the deconsolidation of Yuanwei New Materials Holdings Limited, an indirect wholly-owned subsidiary of the company, along with its subsidiaries.

Additionally, financial costs decreased by about HK$1 million. However, these positive contributions were partially offset by a gross loss of approximately HK$5.1 million from the construction division, compared to a gross profit of around HK$4 million in the 2025 fiscal year. Further offsets came from higher marketing and system-related expenses, as well as impairment losses amounting to about HK$29.5 million and HK$2.5 million, respectively.

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