The board of LIFE CONCEPTS (08056) announces that the Group expects to record a profit ranging from approximately HK$3 million to HK$5 million for the year ending March 31, 2026.

This represents a decrease of about HK$44.3 million to HK$46.3 million compared to the profit of approximately HK$49.3 million recorded for the year ended March 31, 2025.

The anticipated reduction in profit for the 2026 financial year is primarily attributable to the absence of non-recurring gains that were recognized in the previous fiscal year.

These non-recurring gains included approximately HK$26.8 million from the dissolution of a subsidiary and about HK$35.2 million from debt restructuring, resulting in a combined decrease of around HK$62 million in one-off income when comparing the two financial years.

Despite the absence of these significant one-off gains, the Group still managed to achieve profitability for the year ending March 31, 2026.

This was mainly due to a gain of approximately HK$22.6 million from the disposal of a subsidiary and an increase in gross profit of about HK$20.8 million compared to the previous financial year.

The positive impact of this increased profit was partially offset by several factors.

These include an increase in employee benefits expenses of about HK$4 million, a rise in finance costs of approximately HK$6.7 million, and a net increase in impairment losses on financial instruments and contract assets of around HK$8.9 million, all compared to the year ended March 31, 2025.

Additionally, there was a one-time fair value loss on financial guarantee liabilities of about HK$2.2 million.

The net effect of these various factors mitigated the impact of the missing one-off gains from the prior year, leading to the expected profit in the range of HK$3 million to HK$5 million for the year ending March 31, 2026.