TOWN HEALTH issued a profit warning, expecting an unaudited consolidated profit of approximately HKD 25.2 million to HKD 39.6 million for the interim period
TOWN HEALTH expects to achieve an unaudited consolidated profit of approximately HKD 25.2 million to HKD 39.6 million within the six months ending June 30, 2025, a significant improvement compared to the unaudited consolidated loss of HKD 28.5 million in the same period of 2024. The main reasons include a decrease in fair value losses on investment properties, no impairment losses on equity in joint ventures, and changes in gross profit, among other factors
According to the announcement from TOWN HEALTH (03886), the group expects to achieve an unaudited consolidated profit of approximately HKD 25.2 million to HKD 39.6 million for the six months ending June 30, 2025, which includes an unaudited consolidated profit attributable to shareholders of approximately HKD 9.1 million to HKD 14.3 million. For the six months ending June 30, 2024, the group recorded an unaudited consolidated loss of approximately HKD 28.5 million, which includes an unaudited consolidated loss attributable to shareholders of approximately HKD 47.7 million.
The turnaround from an unaudited consolidated loss to an unaudited consolidated profit is mainly due to the combined effects of the following factors: the fair value loss of the group's investment properties for the six months ending June 30, 2025, decreased compared to the six months ending June 30, 2024; no impairment loss was recorded for the group's interests in joint ventures for the six months ending June 30, 2025, whereas an impairment loss was recorded for the six months ending June 30, 2024; the group recorded profits from its share of joint ventures for the six months ending June 30, 2025, compared to losses from joint ventures for the six months ending June 30, 2024; and the group's gross profit for the six months ending June 30, 2025, decreased compared to the six months ending June 30, 2024
