Guangdong – Hong Kong Greater Bay Area Holdings Issues Positive Profit Alert for FY2025

Key Highlights

• Return to Profitability: The Group expects to record a profit of not less than RMB30.0 million for FY2025, reversing from a significant loss of approximately RMB2,041.3 million in FY2024.
• Profit Attributable to Shareholders: Profit attributable to equity shareholders is expected to be not less than RMB40.0 million for FY2025, compared to a loss of approximately RMB1,834.6 million for FY2024.
• Major Turnaround: The projected turnaround is driven by debt restructuring and new business activities, marking a substantial shift in the Company’s financial health.

Detailed Factors Behind the Turnaround

1. Debt Restructuring:
   • The Company issued mandatory convertible bonds in the first half of FY2025 to redeem its US dollar-denominated senior notes due 2029 (ISIN: XS2609459123, Common Code: 260945912).
   • This transaction generated notable debt restructuring income, which contributed positively to the Group’s bottom line.
2. AI Business Acquisition:
   • In October 2025, the Group acquired an artificial intelligence (AI) business, which quickly contributed net profits from the acquisition date to year-end.
   • This profit was mainly driven by a surge in demand for AI computing power, indicating successful diversification into high-growth technology sectors.
3. Impairment Losses:
   • Despite the positive developments, the Group recorded impairment losses on investment properties, inventories, and financial assets related to its infrastructure business in the second half of FY2025.
   • However, overall results remain positive due to the other factors mentioned above.

Matters of Importance for Shareholders

• Price Sensitive Information: The significant turnaround from a multi-billion RMB loss to a profit is highly price sensitive and could materially affect the share value.
• New Business Direction: The AI business acquisition and immediate profitability suggest a new strategic direction with high growth potential, which investors should monitor closely.
• Debt Restructuring: Successful restructuring reduces financial risk and interest expenses, improving the Group’s financial position.
• Impairments: Ongoing risks exist in the infrastructure segment, as reflected by impairment losses. Investors should remain cautious regarding this business line.
• Preliminary Figures: The results discussed are based on unaudited consolidated management accounts and may be subject to adjustment. The audited results are expected to be published by the end of 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 announced.

Management and Governance

• Board Composition: The current executive Directors are Mr. Luo Jieping (Chairman and Executive Director), Mr. Zhong Junhua, and Mr. He Fei. The independent non-executive Directors are Dr. Han Qinchun, Mr. Chen Yangsheng, and Dr. Qian He.

Conclusion

This announcement marks a significant positive development for Guangdong – Hong Kong Greater Bay Area Holdings Limited, with a return to profitability, successful debt restructuring, and entry into the fast-growing AI sector. The reversal from heavy losses to expected profits is a material event that is likely to impact the Company’s share price. Investors should keep a close watch for the final audited results and updates regarding the AI business growth and infrastructure segment risks.

Disclaimer: The above article is based on the preliminary announcement by Guangdong – Hong Kong Greater Bay Area Holdings Limited. The figures are unaudited and subject to change. Investors should refer to the Company’s audited annual results, expected by March 2026, and exercise due caution. This article does not constitute investment advice.

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