Dongfang Enterprises (00018.HK) issued a profit warning and expects to record a net profit of 65 to 80 million yuan for the fiscal year ending in March this year, compared with a net profit of 167 million yuan in the same period last year.

The company stated that the decrease in net profit was directly caused by the insufficient recovery of local economic activity, resulting in a decrease in the group's media business income. During the reporting period, the government no longer provided support subsidies, while the group received government support subsidies of approximately 22.277 million yuan in the same period last year. The group also recorded gains from the sale of Australian properties and reversals of provisions for contingencies of about 19.472 million yuan in the same period last year. At the end of the reporting period, the valuation of investment properties held by the company decreased and the impairment of leased buildings amounted to approximately 9.473 million yuan.