CHINA NEW HLDGS (08125) issues profit warning, expecting annual operating losses to increase by approximately HK$19.6 million compared to the previous year.

China New Holding (08125) announced that compared to the operating loss of approximately 12.7 million Hong Kong dollars for the year ended March 31, 2025, it is expected that the Group will incur an operating loss of approximately 19.6 million Hong Kong dollars for the year ending March 31, 2026. Based on the information currently available, the Board of Directors believes that the increase in the expected operating loss is mainly due to the combined effects of the following factors: expected credit loss provisions of approximately 14.4 million Hong Kong dollars for long-aged trade receivables of the operating business; expected credit loss provisions of approximately 1.4 million Hong Kong dollars for contract assets of the operating business; and reduction in administrative expenses due to effective cost control.