Summit Capital (08375.HK) issued a profit warning, expecting a significant increase in net loss of approximately 8-8.5 million Hong Kong dollars in the mid-term compared to the same period last year.

The Zhixun Finance APP reported that Sumitomo Capital (08375.HK) issued an announcement stating that the group is expected to incur a comprehensive net loss of approximately 8 to 8.5 million Hong Kong dollars for the six months ending on June 30, 2025, compared to a comprehensive net loss of about 140,000 Hong Kong dollars for the six months ending on June 30, 2024, representing a significant increase of about 7.86 million Hong Kong dollars to 8.36 million Hong Kong dollars. The increase in comprehensive net loss is mainly due to the strategic pricing adopted by the group to maintain market share in its main business areas, resulting in a decrease in profitability; a one-time fair value gain of approximately 3.07 million Hong Kong dollars included in profit or loss for financial assets at fair value as of the six months ending on June 30, 2024; and an increase in general expenses, such as employee benefits, professional fees, and depreciation expenses.