XINKONG INT CAP (00993) issues profit warning, expecting a net loss of HK$290-310 million in the mid-term.

XINKONG INT CAP (00993) announces that the group is expected to incur a net loss of HK$290 million to HK$310 million for the six months ending June 30, 2025, compared to a net profit of approximately HK$143 million for the six months ending June 30, 2024. The net loss for this period is mainly due to: (1) the group recording a significant impairment loss for the period, primarily attributable to a substantial decrease in the expected recoverable amount of a loan; (2) net losses from financial assets recognized at fair value through profit or loss for the period. The net profit in the previous period was mainly due to a significant reversal of impairment allowances for the above-mentioned loan due to an increase in the fair value of the collateral, and net gains from financial assets recognized at fair value through profit or loss.