Times Group Holdings (01023)'s profit warning expects annual shareholders' losses to narrow to about HK$110 million to HK$130 million year-on-year

According to the Zhitong Finance App, Times Group Holdings (01023) announced that the Group expects to obtain losses attributable to the Company's owners between HK$110 million and HK$130 million for the year ending June 30, 2026, while losses attributable to the Company's owners were approximately HK$178 million for the same period in 2025. This significant improvement is mainly due to 1) a one-time major loss due to the termination of Cole Haan's business last year (as defined in the Company's announcement dated November 26, 2024); and 2) Compared with the investment property fair value loss of about HK$109 million achieved during the same period in 2025, the expected investment property fair value loss for the year ended June 30, 2026 will range from about HK$50 million to HK$55 million.

The revenue of the manufacturing business segment for the year ended June 30, 2026 is expected to increase by approximately HK$918 million compared to the same period in 2025. However, compared with the division's pre-tax loss of approximately HK$3.768 million for the same period in 2025, it is expected that the pre-tax loss for the year ended June 30, 2026 will increase. This is mainly due to the appreciation of the RMB against the US dollar, weakening the manufacturing segment's gross profit margin, and the expectation that a number of non-cash provision adjustments will be made.

The revenue forecast for the retail business segment for the year ended June 30, 2026 will decrease compared to the segment revenue of approximately HK$655 million for the same period in 2025 due to the termination of the Cole Haan business. However, compared with the division's pre-tax loss of approximately HK$62.265 million for the same period in 2025, it is expected that the year ending June 30, 2026 will achieve partial profit before tax. The reversal of loss into profit was mainly due to the Group's termination of Cole Haan's business and a one-time major loss of approximately HK$83.568 million last year, which did not occur again this year. However, the segment profit before tax is expected to be affected by a number of adjustments to non-cash provisions.

The earnings of the Property Investment Division for the year ended June 30, 2026 are expected to decrease compared with the segment revenue of approximately HK$11.193 million for the same period in 2025. Compared with the division pre-tax loss of approximately HK$102 million for the same period in 2025, the pre-tax loss for the year ended June 30, 2026 is expected to decrease. This is because the expected fair value loss for the year ended June 30, 2026 will be drastically reduced compared to the fair value loss of approximately HK$109 million achieved during the same period in 2025.