KAI YUAN HLDGS issues a profit warning, expecting a mid-term loss attributable to shareholders of no less than approximately HKD 99.96 million
KAI YUAN HLDGS issued a profit warning, expecting a loss attributable to shareholders of no less than HKD 99.96 million for the six months ending June 30, 2025, compared to a profit of approximately HKD 7.93 million for the same period in 2024. The reasons for the loss include reduced revenue due to the closure of certain areas of the Paris Marriott Hotel, increased loan impairment provisions related to joint ventures, rising financing costs, and decreased other income
According to the Zhitong Finance APP, KAI YUAN HLDGS (01215) announced that the group expects to incur a loss attributable to the owners of the company of no less than approximately HKD 99.96 million for the six months ending June 30, 2025, while it recorded a profit of approximately HKD 7.93 million for the six months ending June 30, 2024.
The transition from profit to loss during the interim period is mainly due to (i) the partial closure of the Paris Marriott Hotel Champs-Élysées for renovations, resulting in a decrease in its contribution to revenue, leading to a gross loss of approximately HKD 10.14 million in the hotel operating segment; (ii) an increase in the outstanding amounts related to the construction assets mortgaged to the group by the joint venture, as well as the restructuring of the joint venture, resulting in an impairment provision of approximately HKD 63.66 million for the loans from the joint venture; (iii) an increase in financing costs during the interim period due to the rise in interest rates on the EUR 175 million bank loan renewed in 2024; (iv) a decrease in other income and gains due to the decline in bank deposit interest rates
