XINKONG INT CAP (00993) announced that the group expects to record a net loss of HK$290 million to HK$310 million for the six months ended June 30, 2025, compared to a net profit of approximately HK$143 million for the six months ended June 30, 2024.

The net loss for the current period is primarily attributable to: (1) the group recognized significant impairment losses during the period, mainly due to a substantial reduction in the expected recoverable amount of a loan; and (2) net losses on financial assets at fair value through profit or loss during the period.

The net profit in the previous period was mainly due to a significant reversal of impairment provisions for the aforementioned loan as a result of increased fair value of collateral, and net gains realized on financial assets at fair value through profit or loss.