Easyknit International warns of substantial loss increase

Easyknit International Holdings Limited (HKEX:1218) issued a profit warning today, projecting a consolidated net loss of at least HK$700 million for the year ending March 31, 2025. This marks a considerable increase from the HK$408.6 million loss reported for the year ended March 31, 2024. The company attributed the expected surge in losses primarily to the loss on deemed disposal of subsidiaries. This has been partially offset by decreases in property write-downs, fair value losses on investment properties, along with gains from modification of convertible note terms and a bargain purchase at the date of deemed acquisition of an associate. The announcement is based on a preliminary assessment of unaudited management accounts, with final results expected to be published on or before June 30, 2025. Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company.