Zhuo Neng (Group) (00131) expects profit attributable to shareholders for the year to be approximately HK$94 million to HK$114 million, turning a year-on-year loss into a profit

According to Zhitong Finance App News, Zhuo Neng (Group) (00131) issued an announcement. Based on the Company's unaudited comprehensive management accounts for the year ended June 30, 2026 (fiscal year 2026) and the preliminary assessment of the latest information currently available to the board of directors, it is expected that the Group will obtain profit attributable to the holders of the Company in the 2026 fiscal year of approximately HK$94 million to HK$114 million, while the year ended June 30, 2025 (“Fiscal Year 2025”) will obtain a loss attributable to the Company's holders of approximately HK$989 million.

The shift from losses attributable to holders of the Company in fiscal year 2025 to profit attributable to the Company's holders in fiscal year 2026 is mainly due to: (i) an increase in property sales in the People's Republic of China, leading to an increase in revenue and gross profit; (ii) a shift from negative changes in fair value of investment properties in fiscal year 2025 to positive changes in fair value of investment properties in fiscal year 2026; (iii) reduction in administrative expenses; and (iv) reduction in provision for properties for sale in development.