Pinestone Capital Limited Issues Profit Warning for FY2025

Key Highlights and Implications for Investors

Pinestone Capital Limited (Stock Code: 804) has issued a profit warning regarding its financial performance for the fiscal year ending 31 December 2025. This announcement was made in compliance with the Hong Kong Stock Exchange Listing Rules and the Inside Information Provisions under Hong Kong law.

Summary of Key Points

• Expected Net Loss for FY2025: The company anticipates recording a net loss in the range of approximately HK\$16.0 million to HK\$20.0 million for the year ending 31 December 2025.
• Improvement Over Previous Year: This projected loss is a reduction compared to the HK\$31.7 million net loss reported for the year ended 31 December 2024, indicating some improvement in financial performance.
• Key Factors Impacting Results:
  • Impairment Losses: Significant impairment losses have been made in respect of trade and loans receivables, particularly relating to the company’s securities-backed lending services.
  • Increase in Operating Expenses: There has been a rise in other operating expenses, further affecting the bottom line.
  • Reassessment of Deferred Tax: The company has also reassessed previously recognized deferred tax, which has had an adverse impact on earnings.
• Preliminary Nature of Figures: The financial information is based on unaudited management accounts and is subject to review by the audit committee. Final results may differ from current estimates.
• Final Results Announcement: The definitive financial statements for the year ended 31 December 2025 are expected to be published at the end of March 2026.

Important Considerations for Shareholders

Shareholders and potential investors should note the following:

• The announcement contains price-sensitive information as it reveals a substantial expected loss for FY2025, though less severe than the preceding year.
• The main sources of losses—impairment of receivables, increased operating expenses, and tax reassessment—point to ongoing operational and credit challenges, especially in the securities-backed lending business.
• The improvement in the loss compared to FY2024 may be seen as a positive sign that the company is managing to reduce its losses, but it remains in a loss-making position, which may continue to weigh on the share price.
• The final audited results could differ from these preliminary estimates, and investors should monitor the official release at the end of March 2026 for confirmation and further details.

Corporate Governance Note

The board of directors currently comprises a mix of executive, non-executive, and independent non-executive directors, with Mr. Lee Chun Tung serving as Executive Director and signatory of the latest announcement.

Caution to Investors

Investors are advised to exercise caution when dealing in the shares of Pinestone Capital Limited due to the ongoing uncertainties and the potential impact of the expected losses on the company’s financial position and share price.

Disclaimer: The information presented above is based on the company’s announcement and unaudited management accounts. The final audited financial statements may differ from the projections discussed. Investors should not rely solely on this article for investment decisions and are encouraged to seek professional advice and review the company’s full financial disclosures.

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