RELIANCE GLO Holdings Limited (00723) announces a joyful profit expectation for the year, with the expected annual net profit attributable to shareholders not exceeding 45 million Hong Kong dollars, turning from a loss to a profit year-on-year.

RELIANCE GLO HL (00723) announced that based on the preliminary review of the unaudited comprehensive management accounts of the Group for the financial year ending March 31, 2026 (financial year 2026), the Group is expected to achieve a net profit not exceeding HK$37 million for the financial year 2026, compared to a loss of around HK$27 million for the financial year ending March 31, 2025 (financial year 2025). The attributable profit to the owners of the Company for the financial year 2026 is expected to be not exceeding HK$45 million, compared to a loss of around HK$17 million for the financial year 2025. The expected turnaround from loss to profit in the financial year 2026 is mainly due to the following factors: (i) losses in the timber supply chain business, primarily attributed to weak demand in the Chinese real estate market, geopolitical instability, uncertainty in U.S. tariffs, pressure on marginal profits, rising operating costs in Europe, and impairment losses on certain trade receivables; (ii) losses in the lending business, primarily due to a reduction in the size of loan portfolio leading to a decrease in income, net impairment changes and write-offs of certain receivables, and impairment losses on debt collateral assets, although the impact of the first two factors is offset by (iii) net fair value gains on financial assets recognized in profit or loss at fair value through profit or loss and net gains on the sale/redemption of financial assets recognized in profit or loss at fair value through profit or loss.