GREENHEART GP (00094) issues a profit warning, expecting a net loss reduction of no less than 45% year-on-year in 2025.

GREENHEART GP (00094) announced that the group expects a net loss reduction of not less than 45% compared to 2025. The main reasons for the decrease in net loss attributable to shareholders are the comprehensive impact of the following items: fair value gain of approximately HK$35.4 million related to artificial forest assets in New Zealand (2024: loss of HK$65.8 million); costs related to the sale of artificial forest assets and land in New Zealand of approximately HK$2.6 million recognized in significant disposal events during the period (2024: none); and a loss of approximately HK$88.8 million (2024: HK$73.8 million) due to the termination of operations in the Suriname division. The Suriname division has consistently achieved negative results in previous years, and despite management's ongoing efforts to improve its operations and performance, the value of assets has significantly decreased over the years. In order to improve financial sustainability and allow management to focus resources on other businesses within the group, the group sold most of its loss-making subsidiaries in Suriname this year, followed by the termination of operations in Suriname. The above sale was made to independent third parties, and the proceeds from the sale were negligible.