Capital FIN (08239) Issues Profit Warning, Anticipates Annual Net Loss of at Least HK$28 Million

Stock News
03/11

Capital FIN (08239) has announced that the group expects to record a net loss attributable to the company's owners of not less than HK$28 million for the 2025 fiscal year. This compares to a net loss attributable to owners of approximately HK$16.9 million for the year ended December 31, 2024. The board of directors attributes the anticipated increase in loss primarily to the combined effect of the following factors: 1. Administrative and other expenses rose by approximately HK$7.7 million compared to the 2024 fiscal year, driven by increased employee costs and a donation made to a university to support the establishment of an artificial intelligence accounting and finance center; 2. An increase of approximately HK$4.1 million in the cumulative exchange loss, previously recognized in other comprehensive income, arising from the deregistration of a subsidiary during the 2025 fiscal year; 3. An increase in income tax expense of approximately HK$24 million compared to the 2024 fiscal year, resulting from the reversal of temporary differences related to expected credit losses due to a reduction in customer loans. These negative impacts were partially offset by: 4. A decrease of approximately HK$17.8 million in the reversal of loss provisions for expected credit losses on customer loans compared to the 2024 fiscal year, also due to the reduction in customer loans.

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