Tycoon Group warns of significant profit decline for 2024

Tycoon Group Holdings (HKEX:3390) has issued a profit warning, projecting a substantial decline in both profit before tax and overall profit for the financial year ended December 31, 2024. The company expects profit before tax to be no more than HK$7.0 million, compared to HK$317.7 million in 2023. The anticipated decrease is attributed primarily to the absence of gains from joint venture disposals, including the HK$186.7 million gain from the disposal of 51% interests in Combo Win Asia Limited (CWA) recognized in 2023. Additionally, the disposal of a 51% stake in CWA in September 2023 led to the deconsolidation of CWA's net profit, and coupled with the weak economy, contributed to a decrease of more than HK$30.0 million from FY2023 to FY2024. A share-based payment expense of HK$20.7 million, compared to HK$1.4 million in the prior year, also impacted profitability. The company advises shareholders to exercise caution while the annual results are being finalized and subject to audit.