Chinney Inv (00216.HK) announced on November 11th that the group expects to report a net loss attributable to owners of the company of not more than HK$75,000,000 for the six months ended September 30, 2024, compared to HK$2,000,000 for the same period in 2023.
The board of directors believes that the expected loss is mainly due to: (1) The delay in recognizing property sales from pre-sold units of the residential project located on Beijing South Road in Guangzhou due to project completion delays, resulting in a significant decrease in the group's revenue. Nevertheless, the company successfully obtained the completion certificate for the project on November 4, 2024. Therefore, it is expected that the related sales of approximately RMB 350,000,000 will be recognized as income in the second half of the 2024/2025 fiscal year and beyond.
(2) As of September 30, 2024, impacted by the downturn in the property markets in Hong Kong and China, the group revalued investment properties in Hong Kong and China, resulting in a fair value loss of approximately HK$160,000,000 (2023: fair value gain of approximately HK$22,200,000). This fair value loss is of non-cash nature and will not affect the group's overall financial condition. The loss is offset by an increase in profits from associated companies compared to the same period last year. The turnaround from loss to profit is attributed to increased revenue and higher profit margins in construction-related business.
