ZHONG HUA INT'L (01064) surged over 160% in morning trading. As of press time, the stock was up 158.33% to HK$0.155, with a turnover of HK$5.7673 million.

On the news front, ZHONG HUA INT'L plans to hold a board meeting on August 29 to consider and approve its interim results. The company announced that the group expects to achieve a net profit of approximately HK$40 million (provisional figure) for the six months ended June 30, 2025, compared to a net loss of approximately HK$31 million (unaudited figure) for the six months ended June 30, 2024.

The announcement stated that the turnaround from loss to profit was mainly attributable to a fair value gain of approximately HK$40 million (provisional figure) on equity interests in an entity during the period, based on preliminary valuations by independent professional property valuers (previous period: loss of approximately HK$28 million (unaudited figure)). This was primarily due to the appreciation of RMB during the retranslation process in the current period.

The fair value gain represents a non-cash transaction and is recognized as an unrealized gain in the group's consolidated income statement.