GOLDEN RES DEV issued a profit warning, expecting an annual loss attributable to shareholders of approximately HKD 14.5 million, a year-on-year turnaround from profit to loss
GOLDEN RES DEV issued a profit warning, expecting a shareholder loss of approximately HKD 14.5 million for the year ending March 31, 2025, a significant turnaround from a profit of HKD 106.8 million in the previous year. The reasons for the loss include a revaluation loss of investment properties of HKD 21.8 million, impairment losses on right-of-use assets and equipment of HKD 15.2 million, and an increase in selling and distribution costs of HKD 38.3 million, partially offset by a reduction in tax expenses of HKD 22.5 million
According to the announcement from GOLDEN RES DEV (00677), the group expects to incur a shareholder loss of approximately HKD 14.5 million for the year ending March 31, 2025, compared to a shareholder profit of approximately HKD 106.8 million for the previous year ending March 31, 2024.
Based on the company's current information, the board believes that the expected shift from profit to loss is primarily due to the combined effects of the following reasons: a revaluation loss of investment properties of approximately HKD 21.8 million, compared to a revaluation surplus of investment properties of approximately HKD 69.4 million for the previous year ending March 31, 2024; an increase in impairment losses of right-of-use assets and equipment of approximately HKD 15.2 million; and an overall increase in sales and distribution costs of approximately HKD 38.3 million. These factors are partially offset by a decrease in tax expenses of approximately HKD 22.5 million for the current year compared to the previous year ending March 31, 2024
