FINSOFT FIN (08018) has issued a profit warning.

The company announced that for the six months ending June 30, 2026 (the 2026 interim period), the group expects to record a net loss reduction of no less than 75%. This compares to a net loss of approximately HK$7.7 million for the six months ending June 30, 2025 (the 2025 interim period).

The anticipated decrease in net loss is primarily due to the combined effects of the following factors: a decrease in the group's gross profit for the 2026 interim period compared to approximately HK$12.5 million in the 2025 interim period; an increase in net fair value gains on financial assets at fair value through profit or loss for the 2026 interim period, up from approximately HK$1.0 million in the 2025 interim period; a reduction in administrative expenses for the 2026 interim period, resulting from the group's implementation of cost control and efficiency improvement measures, compared to approximately HK$17.1 million in the 2025 interim period; and a reversal of impairment loss provisions on loans and interest receivables in the 2026 interim period, in contrast to a provision of approximately HK$4.1 million recognized in the 2025 interim period.