Green Heart Group (00094) expects net loss to be reduced by no less than 85% in the first half of the year

According to the Zhitong Finance App, Green Heart Group (00094) issued an announcement. The Group expects the net loss for the six months ending June 30, 2026 to be reduced by no less than 85% compared to the net loss of HK$97.598 million for the same period last year. The Group believes that the significant improvement in the Group's financial performance is mainly due to the net impact of the following: (i) Net income of approximately HK$26.7 million (2025: zero) from the very significant sale of New Zealand plantation assets and related properties, plants and equipment, including approximately HK$59.4 million in revenue from the sale, after deducting confirmed related sales costs of approximately HK$32.7 million during the period. (ii) A fair value loss of approximately HK$9.1 million (2025: fair value gain of HK$22.7 million) for plantation assets located in New Zealand. The fair value loss was mainly due to a drop in log sales prices in a challenging market environment; (iii) the Sulinan Division had terminated operations with a loss reduction of approximately HK$88.4 million.

For the six-month period ending June 30, 2025, the Group sold most of its loss-making subsidiaries in Sulinan to an independent third party and terminated Sulinan's business. Since these subsidiaries are collectively in net debt, the proceeds from the sale are insignificant.