Crownicorp (00727) has announced a profit warning, stating that for the financial year ending March 31, 2026, the group is expected to record a comprehensive loss attributable to shareholders of not less than HK$70 million.

This represents a significant shift from a profit to a loss compared to the previous year, which saw a comprehensive profit attributable to shareholders of approximately HK$16 million for the year ended March 31, 2025.

The projected loss for the current reporting period is primarily attributed to several key factors.

These include an increase in impairment losses for property, plant, and equipment as well as properties under development for sale, which rose by HK$11 million and HK$38 million, respectively.

Additionally, there was an increase in impairment losses for trade receivables and other receivables amounting to HK$9.5 million.

Furthermore, depreciation charges for property, plant, and equipment increased substantially, from HK$1.4 million in the previous reporting period to HK$21.4 million in the current period.