CAPITAL FIN (08239) issued a profit warning, expecting the annual loss attributable to shareholders to be no less than HK$28 million.

CAPITAL FIN (08239) announces that the Group expects to incur a loss of not less than HK$28 million attributable to the owners of the Company for the year 2025, while for the year ended December 31, 2024 (2024 financial year), the Group expects a loss of approximately HK$16.9 million attributable to the owners of the Company. The Board believes that the increase in expected loss is mainly due to the following factors: 1. Administrative and other expenses are expected to increase by approximately HK$7.7 million compared to the 2024 financial year, due to higher employee costs and donations, with donations made to support the establishment of an Artificial Intelligence Accounting and Finance Center at a university; 2. An increase of approximately HK$4.1 million in cumulative translation losses previously recognized within other comprehensive income upon the liquidation of a subsidiary in the 2025 financial year; 3. An increase in income tax expenses of approximately HK$24 million compared to the 2024 financial year due to the reversal of expected credit losses related to customer loans. These impacts are partially offset by the following factors: 4. An approximately HK$17.8 million decrease in credit losses expected on customer loans due to the reduction in customer loans compared to the 2024 financial year.