SIM TECH (02000) issued a profit warning, expecting shareholders to suffer a loss of approximately HK$75 million to HK$115 million, turning from a profit to a loss year-on-year.

SIM TECH (02000) announces that the group expects to incur a loss attributable to owners of the company of approximately HKD 75 million to HKD 115 million for the fiscal year 2024, as compared to a profit attributable to owners of the company of approximately HKD 344.3 million for the year ending December 31, 2023. The board of directors believes that the main reason for the expected turnaround from profit to loss in the fiscal year 2024 is consistent with the situation disclosed in the interim report for 2024: the continuing poor economic conditions both domestically and internationally, coupled with significant losses in the first half of the year, have made it difficult for the group to reverse the situation of incurring losses in its core business for the year. However, the main causes of the loss in the fiscal year 2024 are still attributed to a significant downward adjustment in the fair value of the group's investment properties and operating losses caused by exchange rate losses. Several subsidiary companies in China were liquidated in the fiscal year 2024, and the devaluation of the Renminbi against the US dollar in the fiscal year 2024 resulted in substantial exchange rate losses when converting the Renminbi to US dollars upon liquidation of these companies. Additionally, the significant profits in the fiscal year 2023 mainly came from a one-time gain generated by the local government in the Qingpu District of Shanghai, China recovering a piece of land from the group. As there will be no such non-recurring income in the fiscal year 2024, the group is expected to turn from profit to loss in the fiscal year 2024.