Tangerine Group's Early Share Price Rises 40%, Expected to Generate at Least HK$1.25 Billion in Net Profit for Shareholders by Mid-Year

Tangerine Group (01132) surged over 48% after earnings, with the stock price rising 40%, now standing at HK$0.084 and trading volume reaching HK$444.96 million.

On August 18, Tangerine Group released an announcement stating that it expects to generate net profit for shareholders of at least HK$1.25 billion in the first half of 2025, compared with a net loss of HK$810 million in the same period last year.

The announcement attributes the expected net profit mainly to the following non-recurring gains: approximately HK$1900 million and HK$4600 million from terminating certain movie theater rental agreements and recognizing previously deferred costs; approximately HK$3900 million from modifying lease agreements for other cinemas; HK$3300 million in tax benefits from reversing a deferred liability related to the sale of a property in Singapore; a non-recurring gain of HK$3.13 billion in 2024 due to the impairment loss of a financial asset, with no corresponding gain in the current period; and a non-recurring gain of HK$2.94 billion in 2024 from selling the equity interest in an associate company, with no corresponding gain in the current period.