HUAXIHOLDINGS issued a profit warning, expecting the interim loss attributable to shareholders to decrease to approximately HKD 2 million to 3 million
HUAXIHOLDINGS issued a profit warning, expecting the interim loss attributable to shareholders for the period ending June 30, 2025, to decrease to approximately HKD 2 million to 3 million, compared to a loss of approximately HKD 21 million in the previous period. The reduction in loss is mainly attributed to the stabilization of the Hong Kong and Chinese securities markets, the turnaround of financial assets from loss to profit, and improvements in environmental governance business
According to the announcement from HUAXIHOLDINGS (01689), the group expects to report a loss attributable to the owners of the company of approximately HKD 2 million to HKD 3 million for the six months ending June 30, 2025 (current period), compared to a loss of approximately HKD 21 million for the six months ending June 30, 2024 (previous period).
The board believes that the reduction in losses for the group during the current period is mainly due to the following reasons:
Benefiting from the stabilization of the Hong Kong and Chinese securities markets during the current period, financial assets measured at fair value through profit or loss turned from a loss to a gain, changing from a net fair value loss of HKD 10.97 million in the previous period to a net fair value gain in the current period; and
The group's environmental governance business turned from a loss to a profit, changing from a gross loss of HKD 7.48 million in the previous period to a gross profit in the current period, as completed construction projects entered the settlement phase, thus the group no longer incurs additional costs for maintaining such projects
