China Sandi (00910.HK) issued a profit warning, expecting to record a tax loss ranging from 0.2 billion to 0.3 billion RMB for the six months ending June 30, 2024, compared to a tax profit of approximately 0.146 billion RMB in the same period in 2023.

The company explained that the expected shift from profit to loss is mainly due to the continued adverse macro environment and the downturn in China's real estate industry, leading to a significant decrease in property sales revenue and investment property rental income; an increase in net fair value loss of investment properties; and recognition of impairment losses on developing properties.