SINOFORTUNE FIN issues a profit warning, expecting to turn a loss into a profit of approximately HKD 7 million in the first half of the year compared to the same period last year
SINOFORTUNE FIN expects to achieve a profit of approximately HKD 7 million in the first half of 2025, a significant turnaround from a loss of HKD 13 million in the same period of 2024. The profit is mainly attributed to the reversal of impairment losses on automobile purchase prepayments amounting to approximately HKD 18.6 million. Nevertheless, the group's sales during the interim period have significantly declined, affected by multiple challenges such as price wars in the Chinese market, geopolitical tensions, and global trade restrictions
According to the Zhitong Finance APP, SINOFORTUNE FIN (08123) announced that the group expects to achieve a profit of approximately HKD 7 million in the first half of 2025, compared to a loss of approximately HKD 13 million in the same period of 2024.
The company believes that the profit during the interim period is mainly attributed to the reversal of impairment losses on prepayments for purchasing vehicles amounting to approximately HKD 18.6 million. During the interim period, the group's business segments performed poorly, leading to a significant decline in group sales, primarily due to intense price wars in the Chinese market, as well as broader challenges driven by geopolitical tensions and the imminent threat of global trade restrictions. These factors collectively disrupted the market environment, suppressed sales, and adversely affected financial performance
