BRIEF: Asset impairment drives Red Star Macalline into the red
Home furnishing retail and shopping mall operator Red Star Macalline Group Corp. Ltd. (1528.HK) warned on Friday that it expects to report a net loss for 2025 primarily due to an asset impairment provision.
The company said it was making the provision due to an ongoing downturn in the property market, which has weakened demand for home furnishings. Its leasing and management income have remained sluggish over the past two years, with rental rates declining markedly from prior periods. This prompted the company to downwardly revise its future rental income projections, triggering a significant write-down in the value of its investment properties.
Shares of Red Star Macalline opened down 0.8% at HK$1.28 on Monday. The stock is down over 40% from its 52-week high.
By Lau Chi Hang
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