Quam Plus International Financial Limited Announces Significant Profit Warning for FY2025

Key Highlights

• Expected Loss: The Group anticipates a consolidated loss before tax of up to HKD235 million for the year ended 31 December 2025, a substantial increase compared to the HKD66 million loss reported for the previous year.
• Primary Causes: The loss is mainly due to fair value loss on the unlisted equity investment in Fortune Origin Group Limited and expected credit loss provisions on credit loans and other financial assets measured at amortised cost.
• Non-cash Impact: Both the fair value loss and credit loss provisions are non-cash items, meaning they will not affect the company’s operating cash flow.
• Core Revenue Growth: Despite the expected loss, the Group’s core operating businesses – including asset management, brokerage, corporate finance, and interest income from brokerage – have demonstrated revenue growth over the prior year.
• Operating Efficiency: The Group has achieved cost savings through improved operating efficiency.
• Preliminary Nature: The information is based on management’s preliminary assessment of unaudited accounts; final audited results will be published on or before 31 March 2026.

Details Investors Should Know

Material Loss and Price Sensitivity: The projected loss for FY2025 is nearly four times greater than the previous year’s loss. This is a material event and is highly likely to be price-sensitive, potentially impacting the share value of Quam Plus International Financial Limited. The main contributors to this loss are non-cash in nature, including:

• Fair value loss on the unlisted equity investment in Fortune Origin Group Limited.
• Expected credit loss provisions on credit loans and other financial assets measured at amortised cost.

Investors should note that these accounting losses do not directly affect the company’s cash flow, but they do impact the reported profitability and may influence market sentiment and valuation.

Growth in Core Business Revenue: There are positive developments in the Group’s core businesses. Revenue from asset management, brokerage, corporate finance, and brokerage interest income has increased compared to the prior year. This suggests underlying business strength despite the headline losses.

Cost Savings Achieved: The Group has implemented measures to improve operating efficiency, resulting in cost savings. This could bode well for future profitability if these measures continue.

Timing and Caution: The results for FY2025 are based on unaudited management accounts and have not been reviewed by auditors or the audit committee. The official audited results will be published by 31 March 2026. Investors are strongly advised to exercise caution in trading the company’s shares until the final results are announced.

Corporate Governance

The Board comprises experienced executive and independent non-executive directors, with Mr. Han Xiaosheng and Mr. Kenneth Lam Kin Hing serving as Co-Chairmen. The announcement was signed by Mr. Han Xiaosheng, Co-Chairman, on behalf of the Board.

Investor Advisory

Shareholders and potential investors should be aware of the significant increase in the projected loss for FY2025 and the non-cash nature of the main contributing items. While core business revenue growth and cost savings are positives, the headline loss is likely to be highly price-sensitive and may affect the company’s share value in the near term. It is recommended to monitor the company’s official annual results announcement and to exercise caution when dealing in the shares.

Disclaimer: This article is based on preliminary unaudited information provided by Quam Plus International Financial Limited. The final audited results are not yet available. Investors should not rely solely on this information for investment decisions and are advised to consult professional financial advisors and await the official annual results announcement.

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