Transtech Optelecom Science Holdings Limited Issues Profit Warning for FY2025

Key Points from the Profit Warning Announcement

• Transtech Optelecom Science Holdings Limited (Stock Code: 9963) has released a profit warning for the financial year ended 31 December 2025.
• The company expects to report a slightly increased net loss of approximately 3% compared to the previous year (FY2024).
• The announcement is made in accordance with Hong Kong Stock Exchange listing rules and relevant provisions regarding inside information.

Details Investors Should Know

The board of directors has highlighted several factors contributing to the expected increase in net loss:

1. Decrease in revenue and increase in gross loss: The company has seen reduced sales and higher costs, resulting in a wider gross loss margin.
2. Increase in provision for impairment loss on property, plant, and equipment: Additional write-downs have been recognized, reflecting deteriorating asset values.
3. Decrease in provision for impairment losses on deposits for purchase of raw materials and acquisition of property, plant, and equipment and other receivables: This indicates fewer new impairment charges in these areas, which partially offsets the increase in other losses.
4. Decrease of allowance for inventory: The company is reducing its provisions for inventory, suggesting improved management or sales of previously impaired stock.
5. Decrease in provision for impairment loss on prepayments: Fewer losses were recognized on prepayments, providing a partial positive impact.

Despite these partial offsets, the overall effect is an increase in net loss for the year.

Potential Price-Sensitive Information

• This announcement is price sensitive as it indicates a worsening financial performance, which may negatively impact investor sentiment and share value.
• The information is preliminary and based on unaudited management accounts; final audited results may differ.
• The results announcement will be published on or before 31 March 2026.
• Shareholders and potential investors are advised to exercise caution when dealing in the shares.

Additional Details

• The announcement was signed by Mr. He Xingfu, Chairman of Transtech Optelecom Science Holdings Limited.
• The Board consists of both executive and independent non-executive directors, ensuring oversight and governance.
• The company is still in the process of finalizing its financial results, which have not yet been reviewed by the audit committee or external auditors.

Disclaimer

This article is based on the preliminary information released by Transtech Optelecom Science Holdings Limited and is intended for informational purposes only. The company’s final audited results may differ from the preliminary figures disclosed herein. Investors are advised to exercise caution and consult professional financial advisors before making any investment decisions.

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