Capital Environment Forecasts Rise in Profit Due to Accounting Change
MT Newswires Live
Mar 13
Capital Environment (HKG:3989) said a change in accounting estimates will result in a decrease of around 391 million yuan in impairment losses and an accompanying increase in post-tax profit of around 293 million yuan for 2025, according to a Hong Kong bourse filing Thursday.
Shares of the firm gained nearly 2% in morning trade Friday.
Capital Environment previously wrote off trade receivables if an invoice was due for more than three years, but said it would now keep such receivables on its books for up to five years before treating them as fully impaired.
The move will also result in a 293 million yuan increase in both the company's total assets and net assets.
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