HK TECH VENTURE (01137) issued a profit warning, expecting an annual loss of approximately 1.45 billion Hong Kong dollars to 1.55 billion Hong Kong dollars.

HK TECH VENTURE (01137) announced that despite the challenging local retail operating environment in the past year - including a relatively moderate pace of retail market recovery, a continued shift in local residents' cross-border consumption patterns, and a significant increase in outbound activities by Hong Kong residents - the Group has maintained a solid business foundation. The Group expects the adjusted profit before deduction of interest, tax, depreciation, and amortization for the Hong Kong e-commerce business to range between HK$305 million and HK$315 million (2024: HK$329 million) for the upcoming year. HKTVmall has maintained stable foot traffic, with around 1.6 million active independent devices per month, and the customer base for 2025 has reached a record high with 1.539 million independent customers (2024: 1.519 million). However, based on a preliminary review of the unaudited consolidated financial statements of the Group for the year ended December 31, 2025, the Group expects to incur an unaudited loss of between HK$145 million and HK$155 million for the fiscal year 2025, and the unaudited adjusted profit before deduction of interest, tax, depreciation, and amortization is expected to be between HK$55 million and HK$65 million, in comparison to the loss and profit in 2024 of HK$67 million and HK$121 million, respectively. The increase in the unaudited loss and decrease in the unaudited adjusted profit before deduction of interest, tax, depreciation, and amortization for the fiscal year 2025 is mainly due to the following significant factors: an increase in the adjusted loss before deduction of interest, tax, depreciation, and amortization for new exploration projects, primarily due to the continued expansion of the street food business in the fiscal year 2025 before achieving economies of scale. These losses are necessary investments to support the Group's long-term growth strategy and the development of innovative products and services; a decrease of 3.5% in total merchandise transaction value for the Hong Kong e-commerce business; and non-cash valuation losses on investment properties based on a valuation conducted by an independent appraiser reflecting current market conditions. These non-cash adjustments will not have any impact on the Group's core business operations or cash flow.