GDC issues a profit warning, expecting to turn a loss into a profit of no less than HKD 23 million in the first half of the year compared to the same period last year
GDC expects to turn a profit in the first half of the year, with an estimated profit of no less than HKD 23 million, an improvement compared to a loss of HKD 22.69 million in the same period last year. The main reasons include a reduction of approximately HKD 17 million in net losses from continuing operations, as well as a one-time net gain of about HKD 33 million from the termination of operations. The company no longer controls Guangdong Global Digital, and its financial performance will no longer be consolidated into the group's financial results
According to the Zhitong Finance APP, Global Digital Creative (08271) announced that the group expects to turn a loss of HKD 22.69 million for the six months ending June 30, 2024, into a profit of no less than HKD 23 million for the interim period ending in 2025.
The turnaround from loss to profit is mainly due to: 1) a reduction in the net loss from continuing operations of approximately HKD 17 million; and 2) a one-time net gain of approximately HKD 33 million resulting from the termination of the consolidated accounting for the group's discontinued operations - Guangdong Global Digital Creative Industry Co., Ltd. As disclosed in the company's announcement on May 27, 2025, the bankruptcy liquidation application for Guangdong Global Digital has been accepted by the court. A bankruptcy administrator was officially appointed on June 11, 2025. Therefore, the company will no longer be considered to have control over Guangdong Global Digital, and its financial performance will no longer be included in the group's financial results
