Great Wall Pan Asia Holdings Limited Issues Significant Profit Warning for FY2025

Key Points for Investors

• Expected Substantial Loss: The Group anticipates an unaudited consolidated loss attributable to shareholders in the range of HK\$452 million to HK\$500 million for the year ended 31 December 2025. This represents a sharp increase compared to the audited loss of HK\$84 million for FY2024.
• Basic Loss Per Share: The projected basic loss per share is HK28.9 cents to HK31.9 cents for FY2025, compared to HK5.4 cents in FY2024. This is a material deterioration and could be highly price sensitive.
• Primary Drivers of Losses:
  • Fair Value Loss on Investment Properties: The Group expects a fair value loss of HK\$203 million to HK\$224 million due to revaluation of investment properties, compared to a fair value gain of HK\$132 million in FY2024.
  • Share of Loss from Associate: The Group estimates a share of loss from an associate of HK\$46 million to HK\$51 million for FY2025, compared to a share of profit of HK\$56 million in FY2024. This is primarily attributable to fair value losses on the associate’s investment properties.
• Market Context: The decline in property values is a result of the ongoing downturn in the Hong Kong property market, especially affecting commercial properties.
• Non-Cash Nature of Losses: The reported revaluation losses are non-cash in nature. The Group’s investment properties and associate investments are held for stable, recurring rental income and long-term returns. The company emphasizes that there is no material impact on its operating cash flow.
• Financial Position Remains Stable: Despite the anticipated losses, management states that the overall financial and business positions of the Group remain healthy.
• Annual Results Timeline: The Company is finalizing its annual results for FY2025, which are unaudited and may be subject to amendments. The official annual results announcement is expected by the end of February 2026.
• Board Composition: As of the announcement date, the Board comprises Mr. Wang Hai and Mr. Wang Zuomin (Executive Directors), Mr. Ren Zhiqiang (Non-Executive Director), and Ms. Li Li Hua, Mr. Moy Yee Wo Matthew, and Dr. Xie Wensi (Independent Non-Executive Directors).

Important Considerations for Shareholders

• Potential Share Price Impact: The significant increase in losses and deterioration in loss per share compared to the previous year are material and price-sensitive. Investors should expect that these developments may negatively impact the share price.
• Commercial Property Exposure: The Group’s and its associate’s exposure to commercial properties in Hong Kong, which are suffering from market downturns, is a key risk factor.
• Caution Advised: Shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s shares and to seek independent professional or financial advice if in doubt.
• Unaudited Results: The information presented is based on preliminary unaudited accounts and may be subject to change. The official audited results will be published at the end of February 2026.

Conclusion

The profit warning issued by Great Wall Pan Asia Holdings Limited is a major development for shareholders and potential investors. The anticipated losses for FY2025 are significantly higher than the prior year, driven by the ongoing slump in Hong Kong’s commercial property market. Although the losses are non-cash in nature, their size and the swing from prior year gains could weigh heavily on the share price. Investors should monitor for further updates and the official audited results, and exercise caution in their investment decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All financial figures are based on unaudited preliminary management accounts and may be subject to change. Investors should consult with a qualified financial adviser before making any investment decisions in relation to Great Wall Pan Asia Holdings Limited.

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