XINKONG INT CAP issued a profit warning, expecting a mid-term net loss of HKD 290 million to HKD 310 million
XINKONG INT CAP expects to record a net loss of HKD 290 million to HKD 310 million for the six months ending June 30, 2025, compared to a net profit of approximately HKD 143 million for the six months ending June 30, 2024. The loss is primarily due to significant impairment losses and net losses from the fair value of financial assets recognized in profit or loss
According to the announcement from XINKONG INT CAP (00993), the group expects to incur a net loss of HKD 290 million to HKD 310 million for the six months ending June 30, 2025, compared to a net profit of approximately HKD 143 million for the six months ending June 30, 2024.
The net loss during this period is mainly due to: (1) the group recognized significant impairment losses during this period, primarily due to a substantial decrease in the expected recoverable amount of a loan; (2) the financial assets measured at fair value through profit or loss incurred a net loss during this period. The net profit in the previous period was mainly due to a significant reversal of impairment provisions for the aforementioned loan due to an increase in the fair value of collateral, and the financial assets measured at fair value through profit or loss realized a net gain
