FW HOLDINGS (00572) has announced a profit warning. The company expects to record an annual loss of approximately HK$50 million to HK$58 million for the fiscal year ending December 31, 2025 (the reporting period). This contrasts with an annual profit of about HK$13 million for the previous fiscal year ended December 31, 2024 (the comparable period). The shift from profit to loss is primarily attributed to the following factors: (i) the absence of a one-time gain of approximately HK$65 million recognized in the comparable period from a significant modification of other borrowings; (ii) a decrease in the fair value of investment properties from about HK$58 million in the comparable period to approximately HK$35 million in the reporting period; and (iii) a net credit loss provision of about HK$0.3 million made for loans and receivables during the reporting period, compared to a net reversal of credit loss provisions of approximately HK$23 million for loans and receivables in the comparable period.
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