Investment holding company PRIME INTEL (08379) has announced a profit warning.

The group anticipates recording a net loss of no less than HKD 15 million for the year ending March 31, 2026. This represents a significant shift from the net profit of approximately HKD 1.6 million achieved in the prior year ending March 31, 2025.

The transition from profit to loss is primarily attributed to two key factors. Firstly, there has been an increase in administrative expenses. This rise is driven by higher operating lease payments for properties under short-term arrangements, increased impairment losses on right-of-use assets, and elevated employee costs. Secondly, the company has faced higher interest expenses related to accepted bills.