COSMOPOL INT'L (00120) has issued a profit warning, indicating that it expects a consolidated loss attributable to shareholders of approximately HK$232 million for the interim period of 2026, compared to a loss of HK$56.5 million recorded in the corresponding six months of the previous year.

Although the group completed the sale of its hotel property within the Chengdu Regal International New Metropolitan project in June 2026, sales momentum for the remaining commercial portions of that Chengdu development, along with other projects in Tianjin, remains sluggish. Consequently, the overall earnings contribution from property sales during the 2026 interim period has been relatively underwhelming.

The widened loss for the review period is primarily attributed to the group's afforestation project in Urumqi, which was intended to be approved for development land. Recent changes in circumstances have necessitated an impairment on prepayments already capitalized into cost accounts related to that afforestation initiative.