CSC Holdings Limited Issues Profit Warning for FY2025: Expected Loss of Up to HK\$15 Million
Key Highlights
- CSC Holdings Limited has issued a profit warning, announcing that the Group expects to record a loss attributable to owners of the Company of not more than HK\$15 million for the financial year ending 31 December 2025 (FY2025).
- This marks a significant turnaround from the profit of approximately HK\$5 million recorded for the financial year ended 31 December 2024 (FY2024).
- The loss estimate is based on the unaudited management accounts, which have not yet been reviewed or audited by the Company’s external auditor.
- The estimated loss for FY2025 may be adjusted, subject to the finalisation of the expected credit loss provision on the Group’s loan receivables.
- The impact of the share of results from an associate is not yet included in the loss estimate and is still under assessment. Any significant impact from the associate’s results will be announced as soon as practicable.
Details for Investors and Shareholders
The Board of Directors attributes the expected loss for FY2025 to three main factors:
- Decreased Interest Income from Money Lending Operations: Interest income from this segment is estimated to decrease significantly to approximately HK\$28 million in FY2025, compared to HK\$50 million in FY2024.
- Lower Bank Interest Income: Bank interest income is expected to drop to around HK\$22 million, down from HK\$38 million in the previous year.
- Impairment Loss on Loan Receivables: There is a reversal of impairment loss on loan receivables of approximately HK\$6 million in FY2025, compared to a provision of HK\$11 million in FY2024.
The Company is still in the process of finalising its annual results for FY2025. Investors should note that the loss estimate is preliminary and may change, especially as the expected credit loss on loan receivables is still being determined. Moreover, the eventual share of results from the Group’s associate could further affect the final loss figure. The Company has committed to making further announcements if the associate’s results have a significant impact.
Potential Price-Sensitive Information
- Turnaround from Profit to Loss: The sharp shift from profit in FY2024 to a loss in FY2025 is highly material and could have a significant impact on the Company’s share price.
- Pending Adjustments: Shareholders should be aware that both the final provision for expected credit loss and the eventual consolidation of the associate’s results could further influence the Group’s financial outcome for FY2025.
- Disclosure Timeline: The final audited results for FY2025 are expected to be announced before the end of March 2026.
Board Composition
- As of the date of this announcement, the Board comprises:
- One Non-executive Director: Dr. Or Ching Fai (Chairman)
- Two Executive Directors: Mr. Chow Man Wai, Tony (Chief Executive Officer) and Mr. Chow Kam Wah
- Three Independent Non-executive Directors: Ms. Ma Yin Fan, Mr. Leung Hoi Ying, and Mr. Lam Kin Fung, Jeffrey
Recommendation for Shareholders and Investors
The Company advises shareholders and potential investors to exercise caution when dealing in the shares of CSC Holdings Limited, given the expected loss and the outstanding uncertainties regarding credit losses and the results from an associate.
Disclaimer: This article is based on the Company’s profit warning announcement and is intended for informational purposes only. It does not constitute investment advice. Investors should review the forthcoming audited financial statements and monitor further announcements from the Company before making any investment decisions.
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