ZHONG HUA INT'L expects a mid-term net profit of approximately HKD 40 million
ZHONG HUA INT'L expects to achieve a net profit of approximately HKD 40 million within the six months ending June 30, 2025, an improvement compared to a net loss of HKD 31 million in the same period of 2024. The main reason for the turnaround from loss to profit is the fair value gain of approximately HKD 40 million on equity investments obtained during this period, primarily influenced by the appreciation of the Renminbi. This gain is a non-cash transaction and is recognized as unrealized income
According to the announcement from ZHONG HUA INT'L (01064), the group expects to achieve a net profit of approximately HKD 40 million (preliminary figure) for the six months ending June 30, 2025, compared to a net loss of approximately HKD 31 million (unaudited figure) for the six months ending June 30, 2024.
The turnaround from loss to profit is mainly due to a fair value gain of approximately HKD 40 million (preliminary figure) from an equity interest in a physical entity, following a preliminary valuation by an independent professional property valuer during this period (previous period: loss of approximately HKD 28 million (unaudited figure)), primarily attributed to the appreciation of the Renminbi during the revaluation process. This fair value gain is a non-cash transaction and is recognized as unrealized gains in the group's consolidated income statement
