iMotion Automotive Technology (Suzhou) Co., Ltd. Issues Profit Alert for FY2025

Significant Increase in Expected Loss Before Tax Raises Investor Concerns

iMotion Automotive Technology (Suzhou) Co., Ltd. (“the Company”, Stock Code: 1274), a leading player in the autonomous driving technology sector, has issued a profit alert for the financial year ended December 31, 2025 (FY2025). The announcement, made in accordance with Hong Kong Listing Rules and regulatory requirements, contains key information that may be price sensitive and of high importance to shareholders and potential investors.

Key Highlights from the Profit Alert

• Substantial Increase in Loss Before Tax: Based on a preliminary review of unaudited consolidated management accounts, the Company expects to record a loss before tax of approximately RMB415.19 million for FY2025. This represents an approximate 44% increase in losses compared to the loss before tax of RMB288.34 million reported for FY2024.
• Primary Factors Contributing to the Increased Loss:
  • Increased R&D Expenditure: The Company has ramped up investment in research and development, particularly in new self-developed products and autonomous driving technology. There has also been a significant investment in recruiting high-end talent specializing in autonomous driving algorithms. These initiatives have resulted in a notable rise in R&D expenses for FY2025 compared to FY2024.
  • Decline in Sales Revenue and Gross Profit: The autonomous driving controller product, Supervision^TM, has experienced a decline in sales revenue. This downturn is attributed to recent market pricing strategies and adjustments to the Company’s product portfolio, ultimately leading to reduced gross profit for FY2025.
• Uncertainty Regarding Final Results: The Company is still in the process of finalizing its annual results for FY2025. The figures disclosed are based on unaudited management accounts and have not yet been reviewed by the independent auditor or confirmed by the audit committee. The final, audited annual results are expected to be published by the end of March 2026.

Implications for Shareholders and Investors

• The substantial increase in loss before tax is material and price sensitive. It reflects higher operational and development costs, as well as challenges in maintaining product sales and profitability.
• The increased R&D spending demonstrates a long-term commitment to technological advancement, but it is currently impacting short-term financial performance.
• The decline in sales of a flagship product, Supervision^TM, raises questions about the Company’s competitive positioning and market demand for its autonomous driving solutions.
• As these factors may affect investor sentiment and the Company’s share price, shareholders and potential investors are strongly advised to exercise caution when trading the Company’s shares at this time.

Management and Board Composition

The announcement was authorized by Mr. SONG Yang, Chairman of the Board and Executive Director. The Board comprises Mr. SONG Yang (Chairman and Executive Director), Mr. LU Yukun, Ms. JIANG Jingfang, and Ms. LIU Fang (Executive Directors), as well as Dr. ZHANG Weigong and Ms. XUE, Rui Shirley (Independent Non-Executive Directors).

Next Steps

Investors can expect the audited annual results for FY2025 to be published by the end of March 2026. Until then, the financials remain subject to adjustment and further review.

Disclaimer: This article is based on the Company’s official profit alert announcement and aims to provide detailed information to investors. The information is subject to change pending the release of audited financial results. Investors should exercise caution and consider seeking independent financial advice before making investment decisions based on this update.

View IMOTIONTECH Historical chart here