VONGROUP issued a profit warning, expecting annual profit attributable to shareholders to be HKD 10 million to HKD 12 million, a year-on-year decrease
VONGROUP issued a profit warning, expecting the annual profit attributable to shareholders for the year ending April 30, 2025, to be between HKD 10 million and HKD 12 million, a decrease of approximately HKD 9 million to HKD 11 million year-on-year. The main reason is the decrease in the fair value of the investment property portfolio, which is expected to decline by HKD 17 million to HKD 18 million. Management pointed out that this impairment is a non-cash accounting treatment and is not expected to have a significant impact on cash flow or operations
According to the announcement from Huanghe Industrial (00318), the group expects to achieve a profit attributable to the owners of the company of HKD 10 million to HKD 12 million for the year ending April 30, 2025 (the current year), compared to approximately HKD 21.1 million for the year ending April 30, 2024 (the previous year). This expected decrease is about HKD 9 million to HKD 11 million, mainly due to a reduction in the fair value of the group's investment property portfolio by approximately HKD 17 million to HKD 18 million according to the preliminary valuation draft, which is accounted for as a non-cash item. Management believes that this decline in fair value is primarily due to the overall weakness of the property market this year. Since this impairment is an unrealized non-cash accounting treatment, it is expected to have no significant impact on the group's cash flow or operations
