Million Cities Holdings Limited: Expected Significant Decrease in Loss for FY2025

Key Highlights

• Substantial Reduction in Loss: The Group expects its loss after tax for the year ended 31 December 2025 (FY2025) to be between RMB20.0 million and RMB29.0 million, compared to a much larger loss of RMB143.5 million in FY2024.
• Loss Attributable to Equity Shareholders: This is projected to range from RMB15.0 million to RMB21.0 million in FY2025, down from RMB113.8 million in FY2024.
• Impairment and Provisions: The Company did not recognize impairment losses on other receivables or make provision for accrued interest in FY2025, unlike the previous year. These were significant contributors to the losses reported in FY2024.
• Operating Improvements: The Group reported a significant decrease in impairment amounts for inventories, as well as lower administration expenses and taxation compared to FY2024.
• Taxation Reversal: FY2025 includes a reversal of over-provision of taxation made in prior years, contributing positively to the results.
• Unaudited Figures: All figures are based on preliminary unaudited management accounts and have not yet been reviewed or audited. Final results may differ.
• Annual Results Release: The audited annual results announcement for FY2025 is expected on or around 30 March 2026.

Investor Considerations & Potential Price Sensitivity

• Sharp Reduction in Losses: The drastic reduction in losses, particularly after the substantial impairments and provisions seen in FY2024, marks a significant turnaround in financial performance. This is likely to be viewed positively by the market and could impact share price.
• Operational Improvements: The reduction in inventory impairment, administration expenses, and taxation signals improved operational efficiency and financial health.
• Absence of Major Impairments: The fact that no new impairment losses or provisions were recognized in FY2025 removes a major negative overhang from the prior year.
• Taxation Reversal: The reversal of previously over-provided taxes not only reduces current expenses but also indicates the possibility of further positive adjustments in future periods.
• Cautionary Note: Since the figures are based on preliminary unaudited accounts, investors should await the audited results before making significant investment decisions.
• Market Impact: The news of a sharp reduction in losses, combined with improved operational metrics, is likely to be price sensitive and may result in upward movement of the Company’s shares as investors react to improved prospects.
• Risk Disclosure: Investors are advised to exercise caution in trading shares until the audited results are announced and all details are confirmed.

Board and Management

The announcement was issued by Chairman and Executive Director Wong Ting Chung. Other executive, non-executive, and independent non-executive directors are also listed, reflecting the Company’s governance structure.

Conclusion

Million Cities Holdings Limited is signaling a substantial improvement in its financial position for FY2025. The expected significant decrease in losses, improved operational metrics, and absence of major impairments and provisions represent a potentially positive catalyst for the Company’s share price. Investors should closely monitor the upcoming audited results, due around 30 March 2026, for confirmation and further details.

Disclaimer

The information provided above is based on preliminary unaudited figures and current management assessments. Actual results may differ. This article does not constitute investment advice. Investors should consult professional advisors and await the official audited results before making investment decisions.

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