ORIENTAL PAY (08613) has issued a profit warning announcement.

Based on a preliminary review of the group's unaudited consolidated management accounts for the financial year ending March 31, 2026, and other information currently available to the board, the group expects to achieve the following results.

Firstly, total revenue for the 2025/26 financial year is anticipated to be approximately HK$15.2 million. This represents a significant decrease of about 56.8% compared to the total revenue of roughly HK$35.1 million for the financial year ended March 31, 2025.

Secondly, the loss attributable to the company's equity holders for the 2025/26 financial year is expected to be no more than approximately HK$34 million. This compares to a loss of about HK$34.2 million attributable to equity holders for the 2024/25 financial year.

The primary reason for the sharp 56.8% decline in total revenue is attributed to a decrease in the number of Chinese tourists traveling to Thailand. This drop in tourism stems from safety concerns related to two key incidents: the ongoing occurrence of kidnapping incidents involving Chinese tourists in Thailand, and a strong earthquake that struck Thailand in late March 2025.

This decline in tourist numbers directly resulted in a reduction of the group's electronic payment transaction volume for the 2025/26 financial year.

The slight reduction in the loss attributable to equity holders for the 2025/26 financial year is primarily due to the group's enhanced cost control measures and its strategic, gradual exit from loss-making projects. These actions led to decreases in general administrative expenses as well as selling and distribution expenses.

However, this positive impact on the bottom line was partially offset by the aforementioned substantial decrease in revenue and an increase in finance costs incurred during the 2025/26 financial year.