DevGreat Group Limited Issues Significant Profit Warning for FY2025: Losses to Substantially Narrow

Key Highlights

• Expected Loss Attributable to Owners (FY2025): Not less than HK\$65 million.
• Comparison to Previous Year (FY2024): The loss is much lower than the HK\$803 million loss recorded for the year ended 31 December 2024.
• Major Drivers of Loss Reduction:
  • Decrease in Provision for Financial Guarantees: Reduced by approximately HK\$431 million year-on-year.
  • Decrease in Fair Value Loss of Investment Properties: Down by approximately HK\$380 million for the period. For comparison, the prior period saw a decrease of approximately HK\$402 million.

Important Information for Shareholders

• Substantial Improvement: While the Group is still expected to report a net loss, the anticipated reduction of approximately HK\$738 million in losses year-on-year is a significant positive development.
• No Audit Yet: The numbers are based on the management’s preliminary review and have not yet been audited or reviewed by the audit committee.
• Disclosure Timing: More detailed financial information will be provided with the official annual results announcement for the year ended 31 December 2025.
• Price Sensitivity: The substantial narrowing of losses may be price sensitive and could impact the share price, as it signals potential stabilization or improvement in the Group’s financial health.
• Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the shares, as the figures are preliminary and subject to change.

Details and Analysis

DevGreat Group Limited (Stock Code: 755) announced through the Hong Kong Stock Exchange a profit warning, stating that the Group expects to report a loss attributable to owners of not less than HK\$65 million for the financial year ended 31 December 2025. This represents a dramatic reduction compared to the HK\$803 million loss for the prior year.

According to management, the decrease in losses is primarily due to:

• A significant reduction in the provision for financial guarantees by approximately HK\$431 million, reflecting lower anticipated liabilities compared to the previous period.
• A decrease in the fair value loss recognized on investment properties, which is expected to drop by around HK\$380 million compared to the previous year’s HK\$402 million decrease.

The announcement emphasizes that these results are based on a preliminary review of internal management accounts and have not yet been audited. Consequently, the final numbers may differ when the audited financial results are published.

The company’s Board, led by Chairman, Executive Director, and CEO Ms. Li Zhen, will provide further details upon the release of its full annual results.

Board Composition

• Executive Directors: Ms. Li Zhen, Mr. Long Tianyu, Mr. Pi Minjie
• Non-executive Director: Mr. Zou Yang
• Independent Non-executive Directors: Dr. Guan Huanfei, Mr. Cao Hailiang, Dr. Lin Xinzhu, Mr. Wang Yuzhou

Investor Guidance

Investors should be aware that, while the Group continues to operate at a loss, the scale of the loss has narrowed considerably, suggesting improvements in some key financial metrics. As such, the announcement could be considered price sensitive and may influence share value, depending on investor sentiment and market conditions.

However, investors are strongly advised to interpret these results with caution until the audited results are officially published.

Disclaimer: This article is based on preliminary figures released by DevGreat Group Limited and should not be construed as investment advice. The final audited results may differ from those stated here. Shareholders and potential investors should exercise caution and consult professional advisers when making investment decisions.

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