CHINA HONGBAO (08316) issues profit warning, expecting a mid-term net loss of no less than approximately 14.4 million Hong Kong dollars.

China Hongbao (08316) announced that the group is expecting to incur a net loss of not less than approximately HK$14.4 million for the six months ending on September 30, 2025, compared to a net loss of approximately HK$4.4 million for the six months ending on September 30, 2024. The board of directors believes that the increase in net loss is mainly due to (i) an increase in service costs of approximately HK$15.3 million, resulting from an increase in revenue during the reporting period; (ii) an increase in administrative expenses of approximately HK$1.7 million, due to an increase in digital marketing costs offset partially by a decrease in administrative staff costs; (iii) an increase in impairment loss on financial assets of approximately HK$6 million. Part of this was offset by an increase in revenue of approximately HK$13.5 million, mainly driven by an increase in revenue from the internet services division of approximately HK$37.3 million, but partially offset by a decrease in revenue from the infrastructure and other construction division of approximately HK$23.8 million.