Chinese Tang Group (00674.HK) issues profit warning, expects annual loss of approximately 1 billion to 1.1 billion Hong Kong dollars.

Zhixin Finance APP News, China Tang Shang (00674.HK) announced that the group is expected to incur a loss of approximately 100 million to 110 million Hong Kong dollars for the financial year ending March 31, 2026, while the group incurred a loss of approximately 72 million Hong Kong dollars for the financial year ending March 31, 2025. The board of directors believes that the above situation is mainly due to the following reasons: (i) the continued downturn in the Chinese real estate development market and sub-leasing investment market, leading to a decrease in the revenue and gross profit margin of the group's real estate projects; (ii) the provision of impairment losses for certain assets in the real estate development market by the group; (iii) the group is required to pay compensation due to the termination of leases with sub-tenants in the sub-leasing investment market.