SEM Holdings Limited Issues Profit Warning for FY2025

Key Highlights and Investor Impact Analysis

SEM Holdings Limited (Stock Code: 9929) has issued a significant profit warning, which is likely to be of considerable interest to shareholders and potential investors. The board announced that, based on a preliminary assessment of unaudited consolidated management accounts for the year ended 31 December 2025, the Group is expected to record a
net loss of approximately HK\$19.8 million. This marks a substantial turnaround from the net profit of approximately HK\$3.8 million recorded for the year ended 31 December 2024.

Key Points from the Announcement

• Profit to Loss Turnaround: The Group projects a swing from a profit of HK\$3.8 million in 2024 to a loss of HK\$19.8 million in 2025, reflecting a significant deterioration in financial performance.
• Reasons for Performance Decline:
  • Decreased Gross Profit Margins: The Board attributes the loss primarily to a decrease in gross profit margins for the year ended 31 December 2025 compared to the prior year.
  • Increased Administrative Expenses: Higher administrative expenses have further impacted overall profitability.
• Preliminary Nature of Results: The figures provided are based on unaudited management accounts and are subject to finalisation and possible adjustments. The final annual results, audited and reviewed by the audit committee, are expected to be published in March 2026.
• Regulatory Compliance: This announcement was made in compliance with Rule 13.09(2) of the Listing Rules and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance.

Important Information for Shareholders

• Potential Price Sensitivity: The significant anticipated net loss and the factors leading to this result are material and price sensitive. Shareholders and investors should be aware that this announcement may lead to increased volatility in the share price.
• Investment Caution: The Board explicitly advises shareholders and potential investors to exercise caution when dealing in the Company’s shares, given the preliminary nature of the information and the negative turnaround in financial performance.

Board Composition

• Chairman and Non-Executive Director: Yao Shuobin
• Executive Director: Wan Man Keung
• Independent Non-Executive Directors: Dr. Huang Mingxin, Dr. Zang Yunzhi, Ms. Chen Tak Yee Dickdy

Next Steps

The Company is in the process of finalising its annual results for the year ended 31 December 2025. The official, audited annual results announcement is expected to be published in March 2026.

Conclusion

The anticipated loss for 2025, primarily due to lower gross profit margins and increased administrative expenses, is a material development. Investors and shareholders are advised to monitor subsequent announcements closely, as the finalised results and any further disclosures could have significant implications for share valuation and market sentiment.

Disclaimer: This article is for information purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. The information is based on preliminary, unaudited accounts and is subject to change upon finalisation and audit.

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