Weixun Holdings (01087) issued a profit warning. The annual net loss is expected to increase to about 61 million yuan to 66 million yuan

Zhitong Finance App News, Weixun Holdings (01087) announced that it is expected that the Group will increase its net loss to about RMB 61 million to RMB 66 million in the 2024 fiscal year, and approximately RMB 35.4 million in the year ended 31 December 2023, mainly due to (1) the poor overall market conditions of the Hong Kong commercial real estate market during the year under review, and a fair value loss of about RMB 16.1 million for investment properties in the 2024 fiscal year (2023: approximately RMB 6.8 million); (2) Because Due to intense competition in the mainland China market and continued uncertainty in the global market, gross profit fell by about RMB 12.3 million in fiscal year 2024; and (3) goodwill impairment of approximately RMB 8.5 million (2023: none) was obtained in the 2024 fiscal year, mainly due to lower market demand for the Group's smart office software solutions business than expected, which led to a reduction in the expected revenue growth of cash generating units, leading to a reduction in future cash flow forecasts and recoverable amounts for cash generating units. Fair value losses and goodwill impairment of the Group's investment properties are non-cash items and will not have an immediate impact on the Group's cash flow and operations.