Sinofortune Financial warns of HK$5.90 million interim loss despite surge in revenue

Bulletin Express
Aug 06

Sinofortune Financial Holdings Limited has issued a profit warning for the six months ended 30 June 2026 (HY2026), projecting a net loss of about HK$5.90 million. In the same period last year (HY2025) the group recorded a profit of roughly HK$7.00 million, underscoring a HK$12.90 million negative swing year-on-year.

Revenue performance contrasted sharply with the bottom line. Boosted by a newly launched artificial-intelligence and digital-marketing segment and stronger sales in its motor-vehicle trading business, group revenue climbed to approximately HK$46.10 million, an elevenfold increase from HK$4.50 million in HY2025. However, management noted that higher inventories and direct costs offset much of the top-line expansion, leaving underlying operating performance broadly unchanged versus the prior‐year period before exceptional items.

The return to loss is chiefly attributed to the absence of a one-off HK$18.60 million reversal of impairment on advance payments for motor-vehicle purchases that benefited HY2025. HY2026 included a smaller compensating factor: a HK$3.50 million reversal of impairment on other receivables.

The company is finalising its unaudited interim results, scheduled for release on 14 August 2026. Until then, figures remain subject to review and possible adjustment. Sinofortune Financial also highlighted that the profit warning constitutes a profit forecast under Hong Kong’s Takeovers Code; it has not yet been reported on by the firm’s financial adviser or auditors due to time constraints.

Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities pending the formal results announcement.

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