SIM Technology Group Limited (“SIM TECH” or “the Group”) (02000) issued a profit warning indicating that it anticipates a loss attributable to owners of the Company ranging from HK$5.00 million to HK$20.00 million for the year ended 31 December 2025. This figure represents a marked decrease compared to the loss of approximately HK$95.00 million in FY2024.

According to the announcement, the narrowed loss is primarily attributable to several factors. First, heightened operational awareness across the Group alongside cost-control measures contributed to further labor cost reductions. Second, increased factory utilization expanded economies of scale, favorably affecting profitability. Third, ongoing project reorganization phased out low-efficiency products with negative gross margins, thereby optimizing the product structure. Additionally, the Group recorded a one-time exchange loss of about HK$30.80 million in 2024 following the dissolution of certain subsidiaries in the People’s Republic of China, which did not recur in FY2025.

The announcement highlights that the final figures may be subject to adjustments after completion of fair value assessments and impairment evaluations. Investors are advised to exercise caution when dealing in the Group’s securities, given that the data is based on a preliminary review of unaudited management accounts.