Ming Shi International Holdings Limited (08483.HK) issues profit warning, expecting to incur a tax-affected net loss of approximately HK$700,000 in the midterm, turning from profit to loss year on year.

Zhtng Cijng APP News, Minshi Kui Xing (08483.HK) announced that the group is expected to incur a net loss of no less than approximately 700,000 Hong Kong dollars after tax for the six months ending June 30, 2025, compared to a net profit of approximately 300,000 Hong Kong dollars after tax for the six months ending June 30, 2024. This is mainly due to (i) a decrease in revenue for the six months ending June 30, 2025, of at least approximately 8.4 million Hong Kong dollars compared to the revenue of approximately 34.6 million Hong Kong dollars for the six months ending June 30, 2024, resulting in a decrease in gross profit of at least approximately 2.6 million Hong Kong dollars compared to the annual gross profit of approximately 10.8 million Hong Kong dollars for the year ending June 30, 2024; and partially offset by (ii) a reduction in administrative expenses of approximately 1.4 million Hong Kong dollars, mainly due to the decrease in employee costs. The decrease in revenue and gross profit is mainly due to a decrease in revenue from the photography service business, as demand for updating identity document photos has slowed, price competition, and the use of electronic identity document photography services in specific scenarios.