The company behind MAX SIGHT GROUP (08483) has issued a profit warning, forecasting a significant increase in losses for the first half of the fiscal year.

The group expects to record a loss attributable to owners of the company of approximately HK$3.2 million to HK$3.5 million for the six months ending in 2026. This compares to a loss of about HK$1.1 million reported in the same period of the prior year.

According to the announcement, the anticipated rise in losses is primarily driven by a substantial decline in revenue during the period. The group estimates a revenue drop of no less than approximately HK$8.8 million, down from roughly HK$26.1 million in the corresponding period of 2025.

The revenue reduction is attributed to two main factors. First, in the photography services business, a major service contract expired and was successfully transitioned from a service provision model to a product sales model in April 2025. This change resulted in a revenue decrease of approximately HK$7.0 million compared to the same period in 2025. Second, in the medical services business, the number of clinic visits fell by about 12% during the period, directly leading to a decline in revenue.

Partially offsetting these negative factors, the group's administrative expenses decreased by no less than approximately HK$1.9 million, falling from about HK$0.87 million in the previous year. This reduction in expenses is mainly due to a drop in staff costs, including the impact from the deregistration of a subsidiary operating in the People's Republic of China, as well as a reduction in administrative headcount following the transition of a major service contract from a service to a product model. Additionally, director remuneration decreased following the resignation of an executive director, effective March 23, 2026.