LUM GROUP (08187) issues profit warning, expecting a comprehensive net loss of approximately HK $3.9 million in the mid-term, a 14.7% increase year-on-year.

JIMU GROUP (08187) announced that it is expected to incur a net comprehensive loss of approximately HK$3.9 million in the first half of 2025 (for the six months ended June 30, 2025), representing an increase of approximately 14.7% compared to the net loss of approximately HK$3.4 million in the first half of 2024 (for the six months ended June 30, 2024). The Board of Directors has identified the following main factors leading to the decline in financial performance in the first half of 2025: (i) Employee benefits expenses increased by approximately 32.0% from around HK$2.5 million in the first half of 2024 to approximately HK$3.3 million in the first half of 2025, primarily due to the hiring of additional senior staff in the first half of 2025; (ii) Other operating expenses increased by approximately 30.0% from around HK$3.0 million in the first half of 2024 to approximately HK$3.9 million in the first half of 2025, primarily due to the establishment of special sale stores in the first half of 2025; and (iii) The impairment loss on trade receivables recognized in accordance with the expected credit loss model in the first half of 2025 amounted to approximately HK$2.2 million, whereas there was no impairment loss recognized in the first half of 2024.