ESUN HOLDINGS issues a profit warning, expecting the annual consolidated loss attributable to the company's owners to decrease by no less than 95% year-on-year
ESUN HOLDINGS issued a profit warning, expecting that the annual consolidated loss attributable to the company's owners for the year ending July 31, 2025, will decrease by no less than 95% compared to the loss of approximately HKD 511 million for the year ending July 31, 2024. The main reasons include the reversal of impairment of right-of-use assets and properties, plants, and equipment, a reduction in depreciation, and an increase in income from successfully negotiating rent reductions and restructuring with landlords
According to the announcement from ESUN HOLDINGS (00571), the company’s board of directors hereby informs the shareholders and potential investors that, based on the preliminary unaudited consolidated management accounts for the year ending July 31, 2025, it is expected that the consolidated loss attributable to the owners of the company for this year will decrease by no less than 95% compared to the consolidated loss of approximately HKD 511 million for the year ending July 31, 2024.
The expected reduction in consolidated loss for this year is mainly due to (i) the reversal of impairment on right-of-use assets and properties, plants, and equipment in the current year, although these assets had significant impairment losses in the previous fiscal year; (ii) a decrease in depreciation of right-of-use assets and properties, plants, and equipment, as these assets had impairment losses in the previous fiscal year; and (iii) successful negotiations with landlords for rent reductions and rent restructuring, which increased the income from revised leases
