K. WAH INT'L (00173) has announced that the group expects to record a loss attributable to its equity holders of no more than HK$900 million for the fiscal year ending December 31, 2025. This contrasts with a profit attributable to equity holders of HK$335 million reported for the year ended December 31, 2024.
The anticipated loss is primarily due to the net impact of several factors. These include impairment provisions for unsold inventory resulting from market conditions, fair value changes on investment properties, and a share of losses from joint ventures that experienced negative gross profit margins due to pricing pressures on project sales.
The impairment provision for property development projects is a non-cash item and is not expected to affect the group's operating cash flow. The group's net gearing ratio remains stable and below 20%.
Despite the forecasted loss, the group's overall financial position is described as remaining robust, with strong liquidity. The company's investment strategy is not expected to change, and it will continue to pursue a prudent investment approach to create value for shareholders.
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