VICTORY SEC (08540) issues a profit warning, expecting its performance in the first half of the year to shift from profit to a loss of approximately HKD 7.51 million compared to the same period last year.

VICTORY SEC(08540) announced that the group expects to incur a loss of approximately HKD 7.51 million in the first half of 2026, compared to a profit of approximately HKD 40.72 million in the same period of 2025. The board believes that the loss during this period is primarily attributed to: 1. During this period, share-based payment expenses (related to the share options granted by the company on June 25, 2025) increased by approximately HKD 2.76 million compared to the same period last year; 2. Other operating expenses increased by approximately 26% compared to the same period last year, mainly due to the increase in legal, professional, and advisory fees related to feasibility studies for expanding into overseas markets. Such expenses are considered non-recurring and necessary for mitigating long-term operational risks through business geographic diversification and for promoting future business growth; 3. Employee costs increased by approximately 23% compared to the same period last year, particularly for employees involved in information technology and compliance work, aimed at enhancing IT infrastructure to cope with the rapid developments in various business areas, while also improving the company's operational agility to provide superior decision-making support for clients, ultimately driving long-term value; and 4. The weak market conditions for virtual assets have adversely affected the investment atmosphere for existing clients and potential clients planning to open new virtual asset accounts. As a result, revenue from virtual asset brokerage services decreased significantly by over 50% compared to the same period last year.