Wang On Group (01222.HK) issued a profit warning, expecting that the equity holders of the parent company of the Group will hold a loss of no more than 850 million yuan as of March 31, 2024, relative to the parent company's equity holders of the Group, who should have a profit of about 12.8 million yuan in the same period of 2023, turning from profit to loss.

The company explained that the above performance was mainly affected by the continuing downturn in the Hong Kong real estate market as of the year ended March 31, 2024, resulting in a significant reduction in the fair value of the development properties held by the Group that can be realized net of their carrying amount; a significant decrease in the comprehensive income of the Group due to the reduced sales and deliveries of completed residential projects; increased losses on fair value of investment properties; increased impairment losses on properties, plants and equipment; increased realized losses on sale of debt instruments; and increased financing costs due to rising interest rates.