SINOFORTUNE-NEW (08123) has issued a profit warning, projecting a loss of approximately HK$5.9 million for the first half of 2026, compared to a profit of around HK$7 million in the same period of 2025.

Despite a significant surge in revenue to about HK$46.1 million for the first half of 2026 (versus HK$4.5 million in the first half of 2025), driven by contributions from a newly established artificial intelligence and digital marketing services segment, as well as increased automotive trading revenue, this rise in revenue was accompanied by a corresponding increase in changes in finished goods inventory and other direct costs. Consequently, after accounting for a one-off impairment reversal, the company's underlying operational performance for the first half of 2026 was broadly similar to that of the first half of 2025.

The projected loss is primarily attributed to certain one-off and non-cash items. Notably, there was no significant reversal of impairment losses on prepayments for vehicle purchases in the first half of 2026 (compared to a reversal of approximately HK$18.6 million in the first half of 2025). This impact was partially offset by a reversal of impairment losses on other receivables of about HK$3.5 million recognised in the first half of 2026 (versus none in the first half of 2025).