---
title: "SOMERLEY CAP issued a profit warning, expecting an annual after-tax loss of approximately HKD 13.8 million"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/244411747.md"
description: "SOMERLEY CAP expects an annual after-tax loss of approximately HKD 13.8 million for the year ending March 31, 2025, a significant increase from the HKD 3.6 million loss in 2024. The loss is primarily due to unfavorable conditions in the Hong Kong corporate financing market, resulting in a revenue decrease of HKD 15.8 million, partially offset by cost optimization plans. Despite the loss, the group's working capital remains robust, with cash and cash equivalents of approximately HKD 51.6 million and no bank borrowings. A pre-tax loss of approximately HKD 11.7 million is expected for the mid-2024 period"
datetime: "2025-06-13T09:39:02.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/244411747.md)
  - [en](https://longbridge.com/en/news/244411747.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/244411747.md)
---

# SOMERLEY CAP issued a profit warning, expecting an annual after-tax loss of approximately HKD 13.8 million

According to the Zhitong Finance APP, Somerley Capital (08439) announced that the group expects to incur a post-tax loss of approximately HKD 13.8 million for the year ending March 31, 2025 (2024: approximately HKD 3.6 million). This includes non-cash expenses related to share-based payment of approximately HKD 1.6 million (2024: approximately HKD 0.7 million) and impairment provisions recognized for trade receivables of approximately HKD 2.3 million (2024: approximately HKD 1.9 million). The increase in post-tax loss is mainly due to the unfavorable business environment in the Hong Kong corporate financing market, resulting in a revenue decrease of approximately HKD 15.8 million, which is partially offset by a cost optimization plan launched in the second half of the year ending March 31, 2025, reducing employee benefit costs by approximately HKD 4 million. Despite the expected post-tax loss, the group's liquidity remains robust, with cash and cash equivalents of approximately HKD 51.6 million as of March 31, 2025, and no bank borrowings.

For the six months ending September 30, 2024, the group recorded a mid-term pre-tax loss of approximately HKD 11.7 million and an adjusted pre-tax loss of approximately HKD 10.6 million (excluding share-based payments of approximately HKD 1.1 million). Therefore, the group will implement a cost optimization plan in December 2024 to update the employee compensation structure and strengthen operational cost control. As a result, the expected pre-tax loss for the six months ending March 31, 2025, is approximately HKD 2.1 million, or approximately break-even on an adjusted basis (excluding discretionary bonuses, share-based payments, and impairment losses recognized for intangible assets totaling approximately HKD 2.2 million)

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