JIMU GROUP issued a profit warning, expecting a comprehensive net loss of approximately HKD 3.9 million for the interim period, an increase of 14.7% year-on-year
JIMU GROUP expects to record a consolidated net loss of approximately HKD 3.9 million in the first half of 2025, an increase of 14.7% year-on-year. The main reasons include a 32% increase in employee benefits expenses to HKD 3.3 million, a 30% increase in other operating expenses to HKD 3.9 million, and confirmed impairment losses on trade receivables of approximately HKD 2.2 million
According to the announcement from JIMU GROUP (08187), the group expects to incur a consolidated net loss of approximately HKD 3.9 million in the first half of 2025 (for the six months ending June 30, 2025), which represents an increase of about 14.7% compared to the net loss of approximately HKD 3.4 million for the first half of 2024 (for the six months ending June 30, 2024).
The board has identified the following main factors leading to the decline in financial performance for the first half of 2025.
(i) Employee benefit expenses are expected to increase by approximately 32.0% from about HKD 2.5 million in the first half of 2024 to about HKD 3.3 million in the first half of 2025, primarily due to the hiring of additional senior staff in the first half of 2025;
(ii) Other operating expenses are expected to increase by approximately 30.0% from about HKD 3.0 million in the first half of 2024 to about HKD 3.9 million in the first half of 2025, mainly due to the establishment of additional outlet stores in the first half of 2025; and
(iii) Impairment losses on trade receivables recognized under the expected credit loss model for the first half of 2025 are approximately HKD 2.2 million, while no such impairment losses were recognized in the first half of 2024
