eSun Holdings Limited Issues Positive Profit Alert, While Lai Fung Holdings Limited Warns of Substantial Losses

Key Highlights from the Joint Announcement

• eSun Holdings Limited (“eSun”) is expected to report a significant turnaround for the six months ended 31 January 2026, shifting from a loss to a profit.
• Lai Fung Holdings Limited (“Lai Fung”) anticipates a dramatic increase in losses for the same period, with losses expected to more than double compared to the previous year.
• Both companies are subsidiaries within the Lai Sun group structure, which also includes Lai Sun Garment (International) Limited (“LSG”) and Lai Sun Development Company Limited (“LSD”).
• These announcements are likely to be price-sensitive and may impact the share values of LSG and LSD, as well as their subsidiaries.

Detailed Financial Performance and Drivers

eSun Holdings Limited (Stock Code: 571)

eSun has issued a Positive Profit Alert for the six months ended 31 January 2026. According to preliminary unaudited consolidated management accounts, eSun Group is expected to record a consolidated profit attributable to its owners of approximately HK\$9 million to HK\$10 million. This marks a substantial turnaround compared to the consolidated loss of HK\$43 million for the same period ended 31 January 2025.

Key drivers for this positive result include:

• Implementation of operational and administrative cost control measures.
• Lower-than-anticipated production costs for entertainment events.
• These gains were partially offset by losses from eSun Group’s film investments during the period.

Note: The unaudited interim results for eSun Group are scheduled to be published on 24 March 2026.

Lai Fung Holdings Limited (Stock Code: 1125)

In contrast, Lai Fung has issued a Profit Warning for the six months ended 31 January 2026. Based on its latest unaudited management accounts, the consolidated loss attributable to owners is expected to increase by no less than 100% compared to the prior period’s loss of approximately HK\$164.0 million. This means Lai Fung could report losses exceeding HK\$328 million.

Primary reasons for this increase in loss:

• Loss incurred on the sale of an accommodation tower.
• Write-down of properties in Hengqin Novotown Phase II.

Note: Lai Fung Group’s unaudited interim results are also scheduled for publication on 24 March 2026.

Impact on Investors and Price Sensitivity

• The contrasting interim results between eSun (profit turnaround) and Lai Fung (significant increase in loss) are highly relevant for shareholders and potential investors in LSG, LSD, and their subsidiaries.
• The positive profit alert from eSun may support or buoy its share price, reflecting improved operational efficiency and cost controls.
• The substantial loss warning from Lai Fung, particularly due to asset write-downs and sale losses, is likely to exert downward pressure on its share price and potentially affect investor sentiment towards the broader Lai Sun group.
• Shareholders and potential investors are advised to exercise caution when dealing in the shares and/or other securities of LSG and LSD.

Corporate Governance

The announcement also details the composition of the Boards at both LSG and LSD, highlighting the leadership of Dr. Lam Kin Ngok, Peter, as Chairman of both companies, as well as the involvement of a range of executive and independent non-executive directors.

Further Information

• For more details, refer to the official websites of eSun (www.esun.com), Lai Fung (www.laifung.com), and the Hong Kong Stock Exchange (www.hkexnews.hk).
• Both eSun and Lai Fung will release detailed interim results on 24 March 2026.

Disclaimer: This article is a summary and analysis based on the official joint announcement by Lai Sun Garment (International) Limited and Lai Sun Development Company Limited dated 13 March 2026. Investors are strongly advised to review the full announcements and interim results, exercise due diligence, and consult professional advisors before making any investment decisions. Market conditions and company circumstances may change, and this article should not be construed as investment advice.

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