Renze Harvest International Limited Issues Profit Alert: Significant Reduction in Annual Loss Expected for FY2025

Key Points from the Report

• Substantial Decrease in Annual Loss: The Group anticipates recording a loss of not more than HK\$130 million for the financial year ended 31 December 2025 (FY2025), compared to a much larger loss of approximately HK\$319.59 million in FY2024.
• Major Factors Behind the Improvement:
  • Fair Value Loss on Investment Properties: This loss is expected to decrease sharply from around HK\$280.74 million in FY2024 to approximately HK\$67.31 million in FY2025.
  • Write-Down of Inventories: The write-down of inventories of properties is forecasted to drop significantly to only HK\$873,000 in FY2025, compared to HK\$151.33 million in FY2024.
• Management Caution: The figures disclosed are based on preliminary unaudited consolidated management accounts and may be subject to adjustment after further internal review. Final results will be announced as required by regulatory rules.
• Board Composition: The Board currently comprises two executive Directors (Mr. Li Minbin and Ms. Liu Jiaxin), one non-executive Director (Mr. Zhang Chi, Acting Chairman), and three independent non-executive Directors (Ms. Zhao Yizi, Ms. Zhang Juan, and Mr. Chan Manwell).

Shareholder Information & Price-Sensitive Details

• This announcement signals a substantial improvement in the Group’s financial performance, with a reduced loss expected for FY2025. The anticipated decrease in loss is primarily driven by lower fair value losses and a significant reduction in inventory write-downs, both of which are material items that could positively impact investor sentiment and the Company’s valuation.
• Shareholders and potential investors should exercise caution: The information is based on preliminary estimates and could be revised after the Board’s final review and completion of the audit process. Any further adjustments or disclosures could impact the share price.
• Regulatory Compliance: The Company will announce further details as required by the Listing Rules and the Securities and Futures Ordinance. Investors should monitor for official updates and final results announcements.

Analysis

The expected reduction in losses—by almost HK\$190 million—is a notable turnaround and likely to be viewed positively by the market. The reduction in fair value losses and inventory write-downs suggests improved asset management and operational efficiency. However, it is important to note that the Company is still forecasting a loss, albeit much smaller than the previous year.

The announcement is likely to be price-sensitive, given the magnitude of the improvement and the material nature of the items involved. Investors should pay close attention to any subsequent disclosures and the final audited results, as further adjustments could influence the Company’s valuation.

Disclaimer

This article is based on preliminary financial information released by Renze Harvest International Limited and is intended for informational purposes only. The figures provided are subject to change pending final review and audit. Investors are advised to exercise caution and consult official sources before making any investment decisions. The author and publisher are not responsible for any actions taken based on this article.

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