Black Sesame International Holding Limited Issues Profit Warning for 2025 Financial Year

Black Sesame International Holding Limited (Stock Code: 2533) has issued a profit warning to its shareholders and potential investors, revealing key financial expectations for the year ended December 31, 2025. This announcement, made in compliance with Hong Kong Stock Exchange regulations, contains significant information that may impact the company’s share price and should be carefully noted by market participants.

Key Highlights from the Profit Warning

• Significant Revenue Growth: The Group expects to record revenue exceeding RMB800 million for the 2025 reporting period. This represents an impressive growth of over 68.7% compared to the year ended December 31, 2024.
• Narrowing Operating Loss: The company forecasts an operating loss of no more than RMB1,500 million, which is a reduction (narrowing) of at least 14.4% compared to the previous year.
• Net Loss Expected: Despite the revenue growth, the Group anticipates a net loss not exceeding RMB1,480 million for the reporting period.

Factors Driving Financial Performance

• Revenue Drivers:
  • Continuous expansion in mass production of advanced driver assistance systems (ADAS) and related solutions for the passenger vehicle market.
  • Milestone achievements in volume deliveries for L2–L3 commercial vehicles and L4 application scenarios, including unmanned logistics.
  • Substantial growth in revenue generated from the robotics business.
• Net Loss Drivers:
  • Ongoing and increased investments in artificial intelligence (AI) and computing power.
  • Share-based compensation expenses amounting to not less than RMB300 million, resulting from new awards granted to employees.
  • Reduced fair value gains from financial instruments, as preferred shares were converted to ordinary shares following the company’s listing on the Hong Kong Stock Exchange.
• Operating Loss Narrowing:
  • Attributed mainly to robust growth in the robotics business and increased gross profit from ADAS, both contributing to a decrease in overall operating costs.

What Shareholders Need to Know

• This announcement is based on preliminary unaudited management accounts and other information currently available to the Board. The final audited results may differ and will be disclosed in the company’s 2025 annual results announcement, expected before the end of March 2026.
• The anticipated narrowing of losses and substantial revenue growth are positive trends, but the continued net loss and large share-based compensation expense may affect investor sentiment and the company’s valuation.
• Conversion of preferred shares to ordinary shares upon listing has resulted in a lower fair value gain, which may have implications for future financial reporting and investor perception.
• Investors are advised to exercise caution when dealing in the shares, as these developments could cause share price volatility.

Corporate Governance Update

As of March 5, 2026, the Board comprises a mix of executive, non-executive, and independent non-executive directors, highlighting the company’s commitment to governance and oversight.

Disclaimer: The above summary is based on Black Sesame International Holding Limited’s profit warning announcement for the year ended December 31, 2025. The financial information is preliminary, unaudited, and subject to change upon finalization and independent review. Investors are urged to refer to the company’s official filings and consult their professional advisors before making any investment decisions. Share prices may be volatile in response to this announcement.

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