Shenzhen Investment Limited Issues Significant Profit Warning for FY2025

Key Highlights from the Profit Warning Announcement

• Massive Increase in Projected Net Loss:
  Shenzhen Investment Limited (“the Company”) anticipates a substantial unaudited consolidated net loss attributable to shareholders for the year ended 31 December 2025 (FY2025), ranging between HK\$4,300 million and HK\$4,500 million. This represents a dramatic increase compared to the audited consolidated net loss of approximately HK\$1,823 million reported for the year ended 31 December 2024.
• Key Factors Contributing to Losses:
  • Increased Share of Loss in an Associate: The Group recorded a higher share of loss from an associate in FY2025.
  • Impairment Provisions on Property Projects: There was an increase in impairment provisions for property projects.
  • Loss from Fair Value Change in Investment Properties: The Group recorded a further loss arising from changes in the fair value of its investment properties.
• Preliminary Figures: The financial information provided is based on the preliminary review of the unaudited management accounts. These figures have not been audited by the Company’s independent auditor nor reviewed by the audit committee.
• Announcement of Final Results: The Company expects to publish the audited results for FY2025 by the end of March 2026.

Implications for Shareholders & Investors

Significant Price-Sensitive Information: The projected net loss for FY2025 is more than double that of the previous year. This is a significant deterioration in the Company’s financial position and is likely to be viewed negatively by the market. The factors behind the losses—especially the increased impairment on property projects and negative fair value adjustments on investment properties—may indicate ongoing challenges in the property sector and within the Company’s asset base.

Potential Share Price Impact: Given the magnitude of the expected loss and the underlying reasons, this profit warning is likely to be price sensitive. Investors should be prepared for possible volatility in the Company’s share price as the market digests this information.

Caution Advised: Both shareholders and potential investors are specifically advised by the Company to exercise caution when dealing in the securities of Shenzhen Investment Limited.

Corporate Governance Note

As of the date of the announcement, the Board of Directors comprises six members, including three executive directors (Mr. WANG Yuwen, Ms. CAI Xun, and Mr. YAN Zhongyu) and three independent non-executive directors (Mr. LI Wai Keung, Dr. WONG Yau Kar, David, and Prof. GONG Peng).

Next Steps

The final audited results for FY2025 are expected to be released by the end of March 2026. Investors are encouraged to monitor further disclosures and updates from the Company.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should refer to Shenzhen Investment Limited’s official disclosures and consult with their financial advisors before making any investment decisions. The financial information summarized here is preliminary and subject to change pending final audit and review.

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