Logan among three fearing profit hits

Logan Group (3380) has warned that its net loss for the first half will range from 500 million yuan (HK$575.56 million) to 800 million yuan.

There are three major reasons for the loss: the pandemic delayed construction progress that decreased income; a year-on-year decline in sales due to a continuing downturn of the real estate industry; and a decrease in the gross profit margin caused by recognizing lower gross profits at some projects.

Logan's warning came as CNQC International (1240) warned that its interim net profit will plunge by 40 percent from HK$259 million to HK$155.4 million.

The decline was mainly caused by a profit contribution drop from a major associated company of around 70 percent. The associated company owns a property development project in Singapore and its cumulative contracted sales exceeded 98 percent as of January 1, causing sales and profit contributions from it to drop sharply in the subsequent six months.

Also warning of a loss was Inkeverse (3700), which said it would swing to an interim net loss of between 100.5 million and 122.8 million yuan from a profit of 142.3 million yuan last year.

Inkeverse expects a provision for impairment of goodwill of about 500 million yuan in relation to its new subsidiary Social Network Technology.

Without taking into account the impact of the impairment, net profit would have been in the range of 355.6 million and 393 million yuan, an increase of 149.9 to 176.2 percent as compared to a year ago.