GWPA HOLDINGS issues a profit warning, expecting a mid-term comprehensive loss attributable to shareholders of approximately HKD 266 million to HKD 294 million
GWPA HOLDINGS expects to incur a consolidated loss attributable to shareholders of approximately HKD 266 million to HKD 294 million for the six months ending June 30, 2025, with a basic loss per share ranging from HKD 16.97 cents to HKD 18.76 cents. Compared to the same period in 2024, the loss is mainly due to the fair value loss on investment properties and losses from associates. Nevertheless, the group's overall financial and business condition remains robust
According to the Zhitong Finance APP, GWPA HOLDINGS (00583) announced that the group expects to incur an unaudited consolidated loss attributable to shareholders of approximately HKD 266 million to HKD 294 million for the six months ending June 30, 2025, along with an unaudited basic loss per share ranging from approximately HKD 16.97 cents to HKD 18.76 cents. In comparison, the unaudited consolidated profit attributable to shareholders for the six months ending June 30, 2024, was HKD 4.52 million, with an unaudited basic earnings per share of HKD 0.29 cents.
The shift from profit to loss during the reporting period compared to the same period in 2024 is mainly due to:
(a) The group expects to incur a revaluation fair value loss of approximately HKD 87 million to HKD 91 million on its investment properties as of June 30, 2025, whereas the group recorded a fair value gain of approximately HKD 79 million on investment properties as of June 30, 2024;
(b) The group expects to share in a loss of approximately HKD 69 million to HKD 72 million from an associate during the reporting period, while the group recorded a profit of approximately HKD 65 million from the same associate for the six months ending June 30, 2024. This is due to the revaluation fair value loss on the investment properties of the associate and increased financial costs during the reporting period.
Due to the continued downturn in the Hong Kong real estate market, the valuation of the group's and its associates' investment properties (primarily consisting of commercial properties) has declined. Despite the above circumstances, since the revaluation fair value gains/losses are non-cash in nature, and the investment properties held by the group and the investments in associates are long-term investment projects aimed at obtaining stable and recurring rental income and investment returns, this will not have a significant impact on the group's operating cash flow, and the overall financial and business condition of the group remains robust
