MOST KWAI CHUNG (01716) issues profit warning, with expected annual net profit attributable to shareholders decreasing by not more than 200 million Hong Kong dollars compared to the previous year.

MOST KWAI CHUNG (01716) announcement: The Group expects to record a net profit attributable to owners of the company of not more than HK$2 million for the fiscal year ending on 31 March 2026 (current fiscal year), compared to approximately HK$6.1 million for the fiscal year ending on 31 March 2025 (corresponding year). The expected decrease in net profit attributable to owners of the company is mainly due to the fair value gain on the acquisition of To Be Honest Limited, which was acquired in stages and accounted for 31% of the issued share capital in the corresponding year, but there were no similar gains in the current fiscal year; Additionally, the increase in employee costs due to the distribution of special bonuses was partially offset by a reversal of impairment losses on trade receivables.