AUTO ITALIA (00720) issues a profit warning, expecting the mid-term consolidated profit attributable to shareholders to be around HK$130 million to HK$140 million.

AUTO ITALIA (00720) announced that the group expects to record a consolidated profit attributable to owners of the company of approximately HK$130 million to HK$140 million for the six months ending June 30, 2026, compared to approximately HK$8.4 million for the six months ending June 30, 2025. The significant increase in the consolidated profit attributable to owners of the company is mainly attributable to an increase in unrealized fair value gains on financial assets measured at fair value through profit or loss during the period, rising to approximately HK$169 million, compared to approximately HK$21.6 million in the previous period. The increase is primarily due to changes in the estimated fair value of contingent consideration arising from the acquisition of Hudson Holding Limited and its subsidiaries. The fair value increase is mainly due to the rise in the company's stock price during the period. The aforementioned fair value gains are of a non-cash nature and do not arise from the groups principal operating activities.