SITOY GROUP (01023) announced that the group expects to record a loss attributable to owners of the company of between approximately HK$170 million and HK$190 million for the year ending June 30, 2025, compared to a profit attributable to owners of approximately HK$102 million for the same period in 2024. This is primarily due to: 1) an expected non-cash fair value revaluation decrease for investment properties of between HK$105 million and HK$115 million; 2) a one-off significant loss arising from the termination of the Cole Haan business.
The revenue of the manufacturing business segment for the year ending June 30, 2025 is expected to decrease compared to the segment revenue of approximately HK$1.066 billion for the same period in 2024. A segment loss before tax is expected for the year ending June 30, 2025, compared to a segment profit before tax of approximately HK$110 million for the same period in 2024. Due to global economic uncertainties and excess inventory, customers have become more cautious when placing orders and have reduced order sizes.
The revenue of the retail business segment for the year ending June 30, 2025 is expected to increase compared to the segment revenue of approximately HK$528 million for the same period in 2024, mainly benefiting from the group's efforts and resources invested in e-commerce platforms. However, a segment loss before tax is expected compared to a segment profit before tax of approximately HK$26.755 million for the same period in 2024, due to a one-off significant loss of approximately HK$83.568 million arising from the termination of the Cole Haan business. This loss stems from write-offs of certain Cole Haan inventory and losses from Cole Haan store capital expenditures, compensation for terminating related employee employment, and final payments to Cole Haan.
The revenue of the property investment segment for the year ending June 30, 2025 is expected to decrease compared to the segment revenue of approximately HK$12.399 million for the same period in 2024. The segment loss before tax for the year ending June 30, 2025 is expected to increase compared to a segment loss before tax of approximately HK$3.359 million for the same period in 2024. This is mainly due to an expected significant non-cash fair value decrease of between HK$105 million and HK$115 million from investment property revaluation for the year ending June 30, 2025. This is primarily attributed to the continued decline in Hong Kong premium office building prices due to intense competition in the office market, weak demand, economic uncertainty, and geopolitical factors.
Despite the company's expectation of recording a loss attributable to owners for the year ending June 30, 2025, the board of directors hereby informs shareholders that the company's dividend policy remains unchanged.