ACME INTL HLDGS (01870) issued a profit warning, expecting a net loss of no less than 52 million Hong Kong dollars for the fiscal year 2025.

ACME INTL HLDGS (01870) announces that, based on a preliminary assessment of its unaudited comprehensive management accounts for the year ending December 31, 2025 (2025 fiscal year) and other information available to the management, the financial performance of the Group continues to face pressure in the 2025 fiscal year, with an expected net loss of not less than HK$52 million. This expectation is a result of the current market environment and the Group's strategic investment plan as outlined in the interim report for the six-month period ending June 30, 2025 (2025 interim report), reflecting the phase impact of the Group's continued investment in the green power energy sector in adverse market conditions. The Group anticipates that the net loss for the 2025 fiscal year is mainly attributed to the following factors disclosed in the 2025 interim report and continuing in the second half of the year: 1. Decline in the permanent gantry business Due to the impact of the macro investment environment, both sales volume and profitability of the Group's permanent gantry business have decreased. Several construction projects have been delayed, coupled with a contraction in industry activities and a decrease in the number of new projects, putting further pressure on the Group's profit margins. Compared to the fiscal year ending December 31, 2024, the Group's revenue from the permanent gantry business in the 2025 fiscal year is expected to decrease from approximately HK$158 million to not more than HK$82 million. 2. Loss in Shandong power trading services business As disclosed in the 2025 interim report, based on relevant accounting standards to reflect the net income between electricity users and suppliers, the Group's AI+ power trading business in Shandong province, China, incurred a negative income of approximately HK$10 million in the first half of the 2025 fiscal year. This is mainly due to abnormal fluctuations in local medium to long-term electricity wholesale prices, leading to high procurement costs. Although policy changes (such as Shandong province's recently announced renewable energy market access policy) are expected to promote market diversification and improve pricing mechanisms in the long run, the Shandong power market is still undergoing an overall adjustment and structural optimization process. In the second half of the 2025 fiscal year, the financial performance of this business continues to be impacted by high procurement costs, and the expected negative income is expected to further grow to not more than HK$25 million. The Group maintains a cautious optimistic view of the prospects for the power trading business, and will continue to closely monitor market dynamics in Shandong province, considering adjusting relative strategies when market conditions improve further under policy drive and operational prospects become clearer. 3. Increased administrative expenses due to strategic investments in the green power energy business The Group continues to actively expand its green power energy business as a long-term core growth driver. To support the development and expansion of the green power energy business, the Group's administrative and upfront project expenses are expected to increase in the 2025 fiscal year, consistent with the financial performance of the six-month period ending June 30, 2025. The Board considers this to be an essential initial investment cost for this business segment.