Imagi International Holdings Issues Profit Warning: Significant Reduction in Annual Loss Expected

Imagi International Holdings Limited (the Company, together with its subsidiaries, the Group) has released an inside information announcement providing a profit warning and updated financial guidance for the year ended 31 December 2025 (FY2025).

Key Highlights from the Announcement

• Anticipated Loss Reduction: The Group expects to report a net loss of approximately HK\$8 million for FY2025, a substantial improvement compared to the net loss of approximately HK\$19 million recorded in the previous financial year (2024).
• Main Drivers of Loss Reduction:
  • Reversal of Impairment Allowances: The Group recognized a reversal in impairment allowances on margin loans receivable and loans receivable, in contrast to the impairment provisions made in the previous year. This reversal has provided a significant positive impact on the bottom line.
  • Turnaround in Fair Value of Investments: Investments in listed securities classified as held-for-trading experienced a positive turnaround, shifting from unrealized losses last year to unrealized gains in FY2025.
• Offsetting Factors: The improvement in net results has been partially offset by a decline in revenue from the securities brokerage and asset management segment, attributed to a challenging economic environment that has affected business activity and client engagement.
• Preliminary Nature of Results: The financial figures disclosed are based on preliminary unaudited consolidated management accounts and have not yet been reviewed or audited by the Company’s auditor or confirmed by the audit committee. Actual results may be subject to change upon finalization.
• Further Announcements and Reporting Timeline: The Company expects to publish its full results announcement for FY2025 in late March 2026, along with the annual report, which will contain audited financial statements and further details.

Important Considerations for Shareholders and Investors

• Price-Sensitive Information: The expected sharp reduction in net loss—by more than 50% year-on-year—may be viewed positively by the market, particularly as it stems from key reversals and investment gains rather than solely from cost-cutting. However, the underlying decline in core segment revenue could temper optimism.
• Volatility and Uncertainty: As the figures are preliminary and unaudited, there is a risk of further adjustments that could impact the final results. Shareholders and potential investors are strongly advised to exercise caution when interpreting this information and in making any investment decisions.
• Upcoming Disclosures: Investors should closely monitor the upcoming results announcement and annual report for audited figures, detailed segmental performance, and management commentary.
• Board Composition Update: As of the announcement date, the Board comprises Mr. Kitchell Osman Bin (Chairman), Ms. Choi Ka Wing, Mr. Shimazaki Koji as Executive Directors, and Mr. Chan Hak Kan, Ms. Liu Jianyi, and Mr. Miu Frank H. as Independent Non-Executive Directors.

Potential Impact on Share Price

The announcement of a significant reduction in annual loss, driven by reversals and investment gains, constitutes material price-sensitive information. Investors may view the reduced loss as an early sign of financial improvement, but continued pressure in core business segments and the preliminary nature of the data introduce uncertainty. Share price may respond to both the improved loss position and cautious outlook.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Financial data referenced herein are preliminary and unaudited, and the final results may differ. Investors should exercise their own judgment and consult with professional advisors before making investment decisions. The author assumes no liability for any losses arising from reliance on this information.

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