Zhuang Shi Institution International (00367) issued a profit warning. Shareholders' losses are expected to be about HK$580 million to HK$640 million for the year

According to the Zhitong Finance App, Chuang Shi Institution International (00367) announced that the Group expects to obtain losses attributable to the Company's equity holders of about HK$580 million to HK$640 million for the year ending March 31, 2025, compared with a loss of approximately HK$932 million last year.

According to an analysis of currently available unaudited financial data, the losses for the year ended March 31, 2025 were mainly due to confirmation of fair value losses in the Group's investment properties; confirmation of impairment provisions for the Group's properties for sale and a development project located in China (included as a deposit in the accounts); however, they were offset by the proceeds announced by the Company on May 9, 2024 and December 13, 2024 for the sale of subsidiaries with assets in Mongolia and Singapore, respectively. However, shareholders and interested investors of the Company should note that the above factors are all accounting losses and have no direct impact on the Group's cash flow. Although the Group expects to lose money for the year ending March 31, 2025, the Group's financial position remains healthy.