The Sincere Company, Limited Issues Profit Warning for FY2025

Key Points of the Announcement

• Significant Increase in Net Loss Expected: The Sincere Company, Limited (“the Company”) anticipates a substantial increase in net loss attributable to shareholders for the year ended 31 December 2025 (FY2025), projected in the range of HK\$63 million to HK\$65 million. This compares to a net loss of approximately HK\$40.1 million for the previous year ended 31 December 2024 (FY2024).
• Absence of One-Off Gain: The main reason for the increased loss is the absence of a one-off gain from the disposal of a property, which contributed approximately HK\$30.6 million in FY2024. This disposal was completed in July 2024 and will not recur in FY2025.
• Gross Profit and Revenue Changes: Gross profit decreased by about HK\$5.6 million, settling at HK\$63.6 million in FY2025 (versus HK\$69.2 million in FY2024). However, the Group’s revenue actually increased slightly by HK\$2.9 million to HK\$134.2 million (FY2024: HK\$131.3 million).
• Cost Reductions: The Company managed to reduce general and administrative expenses by HK\$7.3 million, bringing them down to HK\$42.7 million for FY2025 (FY2024: HK\$50.0 million). Finance costs were also reduced by HK\$7.1 million to HK\$16.0 million (FY2024: HK\$23.1 million). These reductions helped cushion the negative impacts to some extent but were not enough to offset the absence of the property disposal gain.
• Audit and Final Results Pending: The Company is currently finalising the audit of its financial results for FY2025. The figures provided are based on unaudited management accounts. The audited results are expected to be published on or before 27 March 2026.
• Management and Board Composition: The announcement was issued by Chairman Lin Xiaohui. The Board includes executive, non-executive, and independent non-executive directors.

Important Information for Shareholders and Investors

Price Sensitive Information: The anticipated loss for FY2025 is notably higher than that of the previous year, primarily due to the absence of the one-off property disposal gain. This increase in net loss, despite a small rise in revenue and reductions in expenses, may be viewed negatively by investors and could potentially impact the share price.

Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the shares of The Sincere Company, Limited, as the financial results for FY2025 represent a significant deterioration compared to FY2024.

Upcoming Results Announcement: Investors should monitor the upcoming audited results announcement, which will provide final figures and further clarity on the Company’s financial position.

Detailed Financial Highlights

Conclusion

The Sincere Company, Limited is facing a materially higher net loss for FY2025, mainly due to the lack of a substantial gain from property disposal which benefitted the previous year’s results. While operational revenue increased and costs were reduced, these improvements could not offset the absence of the one-time gain. Investors should closely follow the Company’s audited results announcement for further details and are cautioned about potential volatility in the Company’s share price.

Disclaimer: The information presented above is based on the Company’s unaudited management accounts and the official profit warning announcement. It may be subject to change pending the completion of the audit. Investors are urged to exercise caution and consult professional advisors before making any investment decisions related to The Sincere Company, Limited.

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