HUIJING HLDGS issues a profit warning, expecting the total mid-term loss to increase to approximately RMB 602 million
HUIJING HLDGS issued a profit warning, expecting the total loss for the six months ending June 30, 2025, to increase to approximately RMB 602 million, up from about RMB 335 million as of December 31, 2024. The loss is mainly due to a decline in gross margin to 13.8%, as well as an increase in other expenses and financial costs
According to the announcement from HUIJING HLDGS (09968), the group expects to incur a total loss of approximately RMB 602 million for the six months ending June 30, 2025 (the current period), compared to a total loss of approximately RMB 335 million for the period ending December 31, 2024.
The expected increase in total loss is primarily due to a net loss of approximately RMB 241 million for the current period, which is attributed to the following main factors:
The gross profit margin decreased from 26% for the year ending December 31, 2024, to 13.8% for the current period. This decline is mainly due to changes in the product and regional mix of properties delivered in 2025 and the relatively low average selling price of delivered properties;
Other expenses for the current period are approximately RMB 77.3 million, including foreign exchange losses of approximately RMB 32.5 million;
Financial costs for the current period are approximately RMB 134 million, including interest on bank and other borrowings (both overdue and not overdue) of approximately RMB 76.9 million, and overdue interest on preferred notes of approximately RMB 57.4 million; and
Income tax expenses for the current period are approximately RMB 30.8 million, including deferred income tax related to land value-added tax provisions of approximately RMB 25 million
