New Times Corporation Limited Issues Significant Profit Warning for FY2025

Key Highlights of the Report

• Expected Loss Surge: The Group expects a substantial loss after tax of approximately HK\$800 million for the financial year ended 31 December 2025 (FY2025). This compares to a loss after tax of HK\$87.4 million for FY2024, representing a dramatic increase.
• Primary Causes of Loss:
  • Disposal of Oil & Gas Assets in Argentina: The Group disposed of its Argentina Business (High Luck Group) in December 2025, leading to a significant loss.
  • Absence of Fair Value Gain: There was no fair value gain recorded on the Group’s investment property in Canada this year, in contrast to a HK\$111.3 million fair value gain in FY2024.
• One-off, Non-Cash Exchange Loss:
  • The bulk of the FY2025 loss stems from the accounting treatment of a long-term depreciation of the Argentine peso (ARS) against the Hong Kong dollar. The ARS depreciated from ARS0.8 to HK\$1 in 2007, to ARS186.5 to HK\$1 in December 2025.
  • Upon disposal of the Argentina Business, an accumulated exchange loss of approximately HK\$670 million was reclassified from the exchange fluctuation reserve to profit or loss, as per HKFRS requirements.
  • This exchange loss is non-recurring, non-cash, and one-off in nature. It does not affect the Group’s total equity and has no impact on continuing operations.

Important Information for Shareholders

• Potential Share Price Impact: The announcement of such a significant loss, particularly the one-off, non-cash exchange loss, is highly price-sensitive and may have a negative effect on the share value. Investors should note that while this loss is largely non-cash and accounting-related, it reflects a major change in the Group’s reported financial performance.
• Non-Recurring Nature of Loss: The majority of the reported loss is a result of currency translation and is not expected to recur in future years, as it relates to the disposal of the Argentina Business.
• Further Details to Come: The Board emphasizes that the figures are based on preliminary unaudited management accounts and may be subject to adjustment. The audited results announcement is expected to be published in late March 2026.
• Investor Caution: Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company until the final results are released.

Board and Management

• Chairman: CHENG, Kam Chiu Stewart
• Chief Executive Officer: TANG, John Wing Yan
• Non-Executive Director: LEE, Chi Hin Jacob
• Independent Non-Executive Directors: YUNG, Chun Fai Dickie; CHIU, Wai On; HUANG, Victor; LEUNG, Sze Lai

Conclusion

The reported expected loss for FY2025 is a highly material event for New Times Corporation Limited, driven predominantly by a one-off, non-cash exchange loss linked to the disposal of its Argentina Business. Investors should monitor further disclosures, particularly the annual results announcement in March 2026, and exercise caution in trading shares due to the possibility of share price volatility.

Disclaimer: This article is based on preliminary, unaudited financial information and Board assessments provided by New Times Corporation Limited. The actual audited results may differ. Investors should refer to official Company announcements and consult financial advisors before making any investment decisions.

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