CNT GROUP issues a profit warning, expecting a mid-term loss attributable to shareholders of HKD 36 million to HKD 40 million
CNT GROUP issued a profit warning, expecting a shareholder loss of HKD 36 million to 40 million for the period ending June 2025, a significant increase compared to HKD 13.5 million for the same period in 2024. The losses are mainly due to increased fair value losses on investment properties, unrecovered litigation costs, and losses from non-wholly-owned subsidiaries. Nevertheless, these losses are of a non-cash nature and have no impact on the group's operating cash flow, with the overall financial condition remaining robust
According to the announcement from CNT GROUP (00701), the group expects a shareholder loss of between HKD 36 million and HKD 40 million for the six months ending June 2025, compared to a shareholder loss of HKD 13.5 million for the six months ending June 30, 2024.
The estimated amount of shareholder loss for the six months ending June 2025 has significantly increased, primarily due to the following factors: (a) the fair value loss of the group's investment properties in Hong Kong and mainland China has greatly increased during the six months ending June 2025, while the fair value loss as of June 30, 2024, was approximately HKD 11.6 million; (b) there were no one-time recoveries of defense costs related to derivative litigation amounting to approximately HKD 6.4 million for the six months ending June 30, 2024; (c) significant shareholder losses from the company's non-wholly-owned subsidiary, Zhongqi Group Limited (01932).
Despite the above information, since the aforementioned fair value losses are non-cash in nature, they do not affect the group's operating cash flow. The group's overall financial condition remains robust
