HUAXI HOLDINGS (01689) issues profit warning. It is expected that the shareholders' deficit for 2025 will be approximately HK$ 32-36 million.

HUAXIHOLDINGS (01689) announcement, compared to a loss of approximately HK$111 million for the year ending December 31, 2024 (last year), the Group expects to record a loss attributable to owners of the Company ranging from approximately HK$32 million to HK$36 million for the year ending December 31, 2025 (current year). The Board of Directors believes that the reduction in the Group's loss for the current year is mainly attributed to the following reasons: The Group's environmental governance business turned from a loss to a profit, with a gross loss of HK$28.99 million last year turning into a gross profit this year. The improvement is due to completed construction projects entering the settlement stage, so the Group no longer incurs additional costs for maintaining these projects; The net impairment loss on financial and contract assets decreased compared to last year; and financial assets recognized at fair value in profit or loss turned from a loss to a profit, with a net fair value loss of HK$5.62 million last year turning into a net fair value gain this year. The transformation is benefited from the stabilization of the securities markets in Hong Kong and mainland China in the current year.