CA CULTURAL (01566) issues positive profit alert, expecting interim profit of not less than HK$900 million, turning from loss to profit year-on-year.

CA CULTURAL (01566) announces that, based on a preliminary assessment of the management accounts of the Group for the six months ended September 30, 2026 (the Period) and information currently available to the Company, the Group is expected to record a profit of not less than HK$900 million for the Period, compared with a loss of approximately HK$65.9 million for the six months ended September 30, 2025. The expected turnaround from loss to profit for the Period is mainly attributable to a one-off gain of approximately HK$1 billion arising from, as disclosed in the Company's announcement dated August 14, 2026, the completion of the subscription of new shares and the Company's debt restructuring (including the effectiveness of the creditor scheme and the related special transactions). Following the effectiveness of the creditor scheme on August 14, 2026, the majority of the Group's liabilities have been discharged and settled at values below their carrying amounts, including the reversal of finance costs that would otherwise have been incurred had the debt restructuring not occurred. Subsequently, compared with the same period of the previous financial year, the Group's financial performance is expected to improve in the next reporting period due to (i) a significant reduction in finance costs; and (ii) the professional fees incurred and completed during the Period in connection with the implementation of the debt restructuring and the resumption of trading of the shares will no longer be incurred.