MOON INC (01723) announced that the group is expected to record a net loss attributable to shareholders of approximately HK$190 million to HK$200 million for the six months ended September 30, 2025, compared to a net profit of HK$691,000 for the same period in 2024. The shift from profit to loss during this interim period is primarily due to the initial recognition of the derivative component of convertible notes issued and converted on May 23, 2025, amounting to approximately HK$193 million. The board believes that issuing convertible notes was an appropriate method to secure additional working capital, leading to a corresponding increase in net assets. The resulting loss is a one-time non-cash accounting event under applicable standards and will not adversely affect the company's operations or cash flow.