Karin Technology warns of 1H FY2026 net loss on one-off non-cash catch-up depreciation for reclassified Hong Kong building
Summary:
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Karin will reclassify its 13‑storey Karin Building in Kwun Tong from “asset held for sale” back to property, plant and equipment under IFRS 5, due to market conditions affecting sale price and disposal timeline.
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Because depreciation had been suspended while the building was held for sale, the Group must now book significant one-off catch-up depreciation for that prior period and resume depreciation going forward.
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These are non-cash accounting adjustments that do not affect cash, liquidity or core operations, but will swing 1H FY2026 from a net profit in the prior-year period to a net loss.
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Management notes that excluding this one-time non-cash adjustment, the Group would have recorded a net profit for 1H FY2026.
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Unaudited 1H FY2026 results are scheduled for release on 13 February 2026; shareholders are advised to exercise caution when dealing in the shares.