Future World Holdings Issues Profit Alert: Significant Loss Expected for FY2025

Key Highlights

• Future World Holdings Limited has issued a profit alert, warning of a substantial loss for the financial year ended 31 December 2025.
• The Group expects to record a loss of approximately HK\$50 million to HK\$58 million for FY2025, compared to a profit of around HK\$13 million in FY2024.
• The anticipated loss is primarily attributable to the absence of one-off gains, a decline in fair value of investment properties, and increased credit loss allowances.

Detailed Analysis

The Board of Directors of Future World Holdings Limited has informed shareholders and potential investors that based on the unaudited management accounts currently available, the company expects to record a significant loss for the year ended 31 December 2025. This reversal from a profitable position in the previous year is due to several key factors:

• Absence of One-Off Gain: In FY2024, the company recorded a substantial one-off gain of approximately HK\$65 million from the substantial modification of other borrowings. This gain will not recur in FY2025, significantly impacting the bottom line.
• Decrease in Fair Value of Investment Properties: The fair value gain of investment properties is expected to decrease from approximately HK\$58 million in FY2024 to around HK\$35 million in FY2025.
• Provision for Credit Loss Allowances: The company anticipates a provision for credit loss allowances on loan and interest receivables, net of approximately HK\$0.3 million for FY2025. This is in stark contrast to the reversal of credit loss allowances, net of about HK\$23 million, recorded in FY2024.

Implications for Shareholders

• This profit alert is a potentially price-sensitive disclosure that could have a material impact on the company’s share price. The shift from profit to a significant loss may negatively affect investor sentiment and market valuation.
• The information provided is based on unaudited management accounts, and the final annual results are still being finalized. The audited results for the Reporting Period (FY2025) will be published by the end of March 2026.
• The Board urges shareholders and potential investors to exercise caution when dealing in the shares of the company amid this uncertainty.

Board Composition

As of this announcement, the Board consists of five executive Directors (Ms. Wang Qian, Mr. Liang Jian, Mr. Yu Qingrui, Mr. Su Wei, and Mr. Lai Long Wai) and three independent non-executive Directors (Mr. He Yi, Mr. Guo Yaoli, and Mr. Bong Chin Chung).

Next Steps

• Investors should closely monitor the upcoming annual results announcement, which will provide the final audited figures for FY2025.
• Any material changes in the Group’s financial position or performance will be duly disclosed in accordance with regulatory requirements.

Disclaimer

The information in this article is based on preliminary, unaudited management accounts provided by Future World Holdings Limited. This summary is intended for informational purposes only and should not be construed as investment advice. Investors are advised to refer to the company’s official announcements and financial statements, and to exercise caution when dealing in the shares of the company.

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