NET-A-GO TECH (01483) issued a profit warning, expecting a mid-term loss attributable to shareholders of approximately HKD 8 million to approximately HKD 12 million.

NET-A-GO TECH (01483) announced that, for the period ending June 30, 2025 (the same period last year), the company is expected to record a comprehensive loss attributable to equity holders of the company ranging from approximately HKD 8 million to HKD 12 million, compared to a comprehensive income of about HKD 47.3 million for the same period last year. The expected loss for the interim period is mainly due to the following factors: as the company terminated its advertising rights contract with Beijing Yingshiguang E-commerce Co., Ltd. in October 2025, there were no recognized revenues from media advertising and marketing business during the interim period, whereas the same business recorded approximately HKD 128 million in the same period last year. Therefore, the group expects revenues for the interim period to be between approximately HKD 94 million and HKD 98 million, a decrease of about 45.8% to 48.0% compared to approximately HKD 181 million recorded in the same period last year. Furthermore, the group expects to record a gross profit ranging from approximately HKD 8 million to HKD 12 million, a decrease of approximately 64.1% to 76.0% compared to the gross profit of about HKD 33.4 million recorded in the same period last year. During the interim period, the group recognized a fair value loss of financial assets measured at fair value through profit or loss, estimated to range from approximately HKD 18 million to HKD 22 million, whereas a fair value gain of approximately HKD 3.7 million was recorded for financial assets measured at fair value through profit or loss in the same period last year. There was essentially no income from the sale of subsidiaries during the interim period. In the same period last year, the group recorded income of approximately HKD 24.2 million from the sale of subsidiaries.