SINOFORTUNE FIN (08123) issues a profit warning, expecting a loss of approximately HKD 5.9 million for the first half of the year.

SINOFORTUNE FIN (08123) announced that the group expects to incur a loss of approximately HKD 5.9 million in the first half of 2026, compared to a profit of about HKD 7 million in the first half of 2025. Despite the significant increase in revenue to approximately HKD 46.1 million in the first half of 2026 (HKD 4.5 million in the first half of 2025), driven by the newly established segment providing artificial intelligence and digital marketing services as well as increased automobile trading income, the revenue increase was accompanied by changes in finished goods inventory and a corresponding rise in other direct costs. Therefore, after deducting one-time impairment reversal items, the group's operating performance in the first half of 2026 is roughly similar to that of the first half of 2025. The loss is mainly due to certain one-time and non-cash items. In the first half of 2026, there was no significant reversal of impairment losses for automobile purchase prepayments (approximately HKD 18.6 million in the first half of 2025). This impact was partially offset by an approximately HKD 3.5 million reversal of impairment losses on other receivables recognized in the first half of 2026 (none in the first half of 2025).