HK Stock Market Move | TONGDA GROUP (00698) rose more than 7%, expected to turn losses into profits last year, with a maximum profit of 1.25 billion Hong Kong dollars.

TONGDA GROUP (00698) rose more than 7%, as of the time of writing, up 7.38% to HK$3.93, with a trading volume of HK$1.7588 million. On the news front, on the evening of February 5th, TONGDA GROUP announced a profit increase, expecting to achieve a net profit attributable to owners of the company for the year ending December 31, 2025, ranging from approximately HK$1.15 billion to HK$1.25 billion, compared to a loss of approximately HK$3.942 billion for the year 2024. The announcement stated that the turnaround from loss to profit was mainly due to a reduction in one-time non-cash asset impairment provisions: a total of approximately HK$2.35 billion was provided for one-time impairment of non-cash assets in 2024, and it is expected that there will be no significant one-time impairment projects in the previous year; the overall gross profit margin improved significantly from a loss margin of 5.9% in 2024 to an expected gross profit margin of approximately between 15.5% and 16.5% for the previous year; operating expenses and research and development costs were optimized.