Zhuoyue Holdings (00653) expects annual profit of approximately HK$8 million

According to the Zhitong Finance App, Zhuo Yue Holdings (00653) announced that the Group expects to make an annual profit of approximately HK$8 million for the year ended June 30, 2026 (fiscal year 2026), while a loss of approximately HK$278 million for the 18 months ended June 30, 2025 (comparison period).

According to the information currently available to the Board of Directors, the expected shift from loss to profit is mainly due to the following factors:

(1) It is expected that the Group's investment in CR Business Innovation Investment Fund L.P. (the fund) (classified as financial assets with profit and loss at fair value) will confirm fair value returns in the 2026 fiscal year, mainly due to the expected increase in the market value of the fund's properties in Tsuen Wan; during the comparison period, a fair value loss of approximately HK$47.7 million was achieved;

(2) The joint venture investment loss of approximately HK$59.1 million confirmed during the comparison period and the loss of the joint venture deemed to be about HK$46.9 million will no longer occur in fiscal year 2026; and

(3) The Group's operating loss was drastically reduced from approximately HK$99.8 million during the comparison period to approximately HK$18 million in the 2026 fiscal year, along with financial costs and other expenses reduced from approximately HK$24 million during the comparison period to approximately HK$16.3 million in the 2026 fiscal year.