ZXZN QI-HOUSE (08395) issued a profit warning, expecting an annual net loss of approximately HK$8.9 million, with a year-on-year change from profit to loss.

ZXZN QI-HOUSE (08395) announced that, based on the preliminary review of the unaudited comprehensive management accounts of the Group for the year ended March 31, 2026, the Group expects a net loss of not less than approximately 8.9 million Hong Kong dollars for the year ended March 31, 2026, while the audited net profit for the year ended March 31, 2025 was approximately 1.6 million Hong Kong dollars. The Board believes that the expected loss instead of profit is mainly due to a decrease in gross profit from the sale of parts and automation equipment business in the year ending March 31, 2026, caused by rising raw material purchase prices and intense competition in the Chinese market, leading to a decrease in gross profit of approximately 25.9 million Hong Kong dollars. Some of the negative impact was offset by a one-time loss of approximately 9.6 million Hong Kong dollars from the discontinued operations in the year ended March 31, 2025, as well as a reduction in income tax expenses of approximately 4 million Hong Kong dollars and a decrease in administrative expenses of approximately 1.7 million Hong Kong dollars for the year ended March 31, 2026.