Sheen Tai Holdings Group Company Limited has issued a profit warning, indicating that its loss from continuing operations for the year ended 31 December 2025 is expected to reach no more than HK$75.00 million. This compares with a loss of approximately HK$30.00 million recorded in the previous financial year.

Management attributes the enlarged deficit primarily to two non-cash items: 1. A fair value loss on a convertible loan receivable. 2. An impairment loss on trade and other receivables.

Both amounts are subject to assessment by an independent valuer.

The figures are based on preliminary, unaudited consolidated management accounts and may be adjusted upon completion of the year-end audit. Final annual results are scheduled for release in March 2025.

The board advises shareholders and potential investors to exercise caution when dealing in the company’s securities.