PKU RESOURCES (HKEX: 00618) has issued a positive profit alert. Based on the board's current information and a preliminary review of the group's unaudited consolidated management accounts for the year ending March 31, 2026, the group expects to record a profit ranging between approximately RMB 14 billion and RMB 18 billion. This represents a significant turnaround from the loss of about RMB 25.2 billion recorded for the year ended March 31, 2025.

Key Drivers of the Expected Profit

The anticipated profit for the period is primarily attributed to three main factors. Firstly, in August 2025, the company injected the entire equity interest of its wholly-owned subsidiary, Antai International Investment Group (Hong Kong) Limited (the "Sale Company"), into a partnership enterprise, generating substantial disposal gains. The Sale Company held 16 subsidiaries, collectively referred to as the "Sale Group," six of which were engaged in property development in mainland China.

Post-Transaction Financial Impact

Secondly, following the completion of the aforementioned transaction, the group no longer holds any real estate development projects in the construction phase. Consequently, the financial expenses and provisions for expected liabilities related to the Sale Group have decreased significantly.

Offsetting Market Factors

Thirdly, the positive impact from the first two factors was partially offset by fair value losses on investment properties, which were driven by the downturn in the property market.