UMP (00722) issues profit warning, expects an annual net loss of approximately HKD 76 million.

UMP (00722) announced that although the group's revenue for the year ending June 30, 2026, remained relatively stable compared to the same period in 2025, it is expected that the group will incur a net loss of approximately HKD 76 million in the 2026 fiscal year, while a net profit of about HKD 32 million was recorded for the year ending June 30, 2025. The unaudited consolidated net loss for the 2026 fiscal year is primarily due to the following factors: (i) an increase in one-time impairment provisions related to goodwill and property, plant, and equipment, compared to the 2025 fiscal year. The anticipated impairment loss is of a non-cash nature and has no effect on the group's cash flow, liquidity position, or day-to-day operations; (ii) an increase in employee costs and rental expenses, mainly due to the opening of a new comprehensive medical center in Foshan during the 2026 fiscal year. The center incurred startup and operational costs during its initial phase, resulting in an increase in the group's operating expenses for the year.