CHINA ECOTOUR (01371) has issued a positive profit alert, signaling a major turnaround in its financial performance for the year. The company anticipates recording a profit attributable to its owners of approximately HK$95 million to HK$105 million for the fiscal year ending June 30, 2026, a stark contrast to the loss of about HK$72.4 million posted during the previous fiscal year.

According to the announcement from the board, this expected shift from a loss to a profit is primarily driven by a one-off gain of roughly HK$182.4 million recognized during the same period. This non-recurring gain stems from the cancellation of financial liabilities following the issuance of plan shares, a strategic move that has significantly bolstered the company's bottom line.

The board attributes the positive outlook to this specific non-operational factor, highlighting the impact of the share issuance scheme on the company's balance sheet. This development marks a notable turnaround for the company, positioning it for a profitable year ahead.