SOFTMEDX (00648) issued a profit warning, expecting a loss of approximately HK$405 million in 2025.

Softmedx (00648) announces that due to the repayment of debt in the form of physical assets, a fair value loss of approximately HK$412 million has been incurred. It is expected that the group will record a significant loss of approximately HK$405 million for the year ending December 31, 2025. This fair value loss is attributed to the issuance of 1.8 billion new shares on November 11, 2025 to repay the loan, with a difference between the issuance price of HK$0.01 per share and the closing price of HK$0.239 per share on the same day. This fair value loss is one-off and non-cash in nature, only affecting the group's income statement and statement of changes in equity, with no impact on the group's balance sheet, cash flow, and net assets. Excluding special items, the group is expected to record a profit of approximately HK$10 million in its daily business operations, while the profit in 2024 (excluding special items) was HK$6.9 million.