KING'S FLAIR issued a profit warning, expecting a mid-term loss of approximately HKD 40 million, turning from profit to loss year-on-year

According to the announcement from KING'S FLAIR (06822), the group expects to incur a loss of approximately HKD 40 million for the six months ending June 30, 2025, compared to a profit of approximately HKD 3.4 million in the same period last year. The main reasons for the shift from profit to loss are: a significant increase in administrative expenses due to depreciation and other operating costs arising from the commencement of nano-fiber production operations at the group's advanced manufacturing center located in Tseung Kwan O Industrial Estate during the reporting period; other income and gains and losses decreased significantly from a profit of approximately HKD 3.7 million in the previous period to a loss of approximately HKD 6.8 million, mainly due to fair value losses on investment properties held by the group, which rose significantly from approximately HKD 4 million in the previous period to approximately HKD 16.9 million during the reporting period, affected by the adverse conditions in the commercial real estate market; and revenue decreased from approximately HKD 334 million in the previous period to approximately HKD 250 million during the reporting period, primarily due to uncertainties arising from U.S. tariffs and expanded policy prospects