LIFE CONCEPTS (08056) issued a profit warning, expecting annual net profit to be around HK$3 million to HK$5 million.

LIFE CONCEPTS (08056) announced that the Group expects to record a profit for the year ending March 31, 2026, ranging from approximately 3 million Hong Kong dollars to 5 million Hong Kong dollars, a decrease of approximately 44.3 million Hong Kong dollars to 46.3 million Hong Kong dollars compared to the profit for the year ending March 31, 2025 (approximately 49.3 million Hong Kong dollars). The decrease in profit for the year ending March 31, 2026, is mainly due to the absence of non-recurring income recorded in the previous financial year, including: a gain of approximately 26.8 million Hong Kong dollars from the dissolution of a subsidiary company; and a gain of approximately 35.2 million Hong Kong dollars from debt restructuring, resulting in a total decrease of approximately 62 million Hong Kong dollars in non-recurring income compared to the previous financial year. Despite the decrease in non-recurring income, the Group was still able to maintain profitability for the year ending March 31, 2026, mainly due to: a gain of approximately 22.6 million Hong Kong dollars from the sale of a subsidiary company; and an increase in gross profit of approximately 20.8 million Hong Kong dollars compared to the year ending March 31, 2025. The positive impact of the increase in net profit was partially offset by the following factors: an increase of approximately 4 million Hong Kong dollars in employee benefits expenses compared to the year ending March 31, 2025; an increase of approximately 6.7 million Hong Kong dollars in financial costs compared to the year ending March 31, 2025; an increase in impairment losses on financial instruments and contract assets of approximately 8.9 million Hong Kong dollars compared to the year ending March 31, 2025; and a one-time fair value loss of approximately 2.2 million Hong Kong dollars on financial guarantee liabilities. The net impact of these factors offset the impact of the lack of non-recurring income from the previous year, resulting in a projected profit for the year ending March 31, 2026, ranging from approximately 3 million Hong Kong dollars to 5 million Hong Kong dollars.