ACME International Holdings (01870) issues a profit warning, expecting a comprehensive mid-term loss of not more than approximately HK$26 million, a year-on-year turnaround from profit to loss.

ACME INTL HLDGS(01870) announced that the group is expecting an unaudited comprehensive loss of no more than approximately 26 million Hong Kong dollars for the six months ending on June 30, 2025, compared to an unaudited comprehensive profit of approximately 4.5 million Hong Kong dollars for the same period in 2024. The group's anticipated loss is mainly due to the following factors: 1. Decline in the permanent suspended platform business The sales volume and profitability of the group's permanent suspended platform business have decreased, mainly attributed to the continued sluggishness in the Hong Kong construction industry in the first half of 2025. Several construction projects have been postponed to the second half of 2025, coupled with a reduction in new project numbers and industry activities shrinking, putting further pressure on the group's profit margins. As a result, the performance of the group's permanent suspended platform business has been adversely affected, reflecting the difficult market conditions currently faced by the industry. However, the permanent suspended platform business segment still managed to achieve a slight profit during the interim period. 2. Loss in Shandong electricity trading service The group's electricity trading business in Shandong Province, China incurred a loss during the interim period, mainly due to abnormal fluctuations in the medium and long-term wholesale prices of electricity in Shandong, leading to an increase in the group's power purchase costs in the province. Due to intense competition in the Shandong electricity market and the general profitability pressure within the industry, the group's electricity trading business in Shandong Province incurred losses in the first half of 2025 as part of a larger market adjustment and structural optimization process. However, with the implementation of the "Notice on Deepening the Marketization Reform of the New Energy On-grid Electricity Price Market to Promote High-quality Development of New Energy" (Document No. 136) by the National Development and Reform Commission and the National Energy Administration, new energy power plants are gradually entering the market, and the group's power purchase costs in the region are expected to decrease, with the performance of the group's business segment expected to improve in the second half of the year. 3. Increase in administrative expenses The group's administrative expenses have increased mainly due to the development of the green electricity business segment during the interim period.