Hong Kong Science and Technology Exploration (01137) Fa Profit Alert expects losses of HK$73 million to HK$83 million in the first half of the year

Zhitong Finance App News, Hong Kong Science and Technology Exploration (01137) issued an announcement. Facing the increasingly fierce competitive environment in the Hong Kong retail and e-commerce market, the Group will further strengthen its customer development and retail market share growth strategies during the first half of 2026. Benefiting from the above measures, the Group achieved the following operating milestones in the first half of 2026:1. Compared with the first half of 2025, the total product order volume of Hong Kong's e-commerce business increased by 5.8% to about HK$4.2 billion in the first half of 2026; 2. The number of independent customers increased 10.2% in the first half of 2026 to about 1,316 million (first half of 2025:1.199 million); 3. During the first half of 2026, the number of active independent devices per month remained stable at around 1.6 million units.

Notwithstanding the above results, the Group is expected to achieve: 1. Unaudited loss of between HK$73 million and HK$83 million in the first half of 2026; 2. Unaudited profit before negative interest, tax, depreciation and amortization until the first half of 2026 is between HK$1 million and HK$11 million, compared to a loss of HK$23.2 million for the first half of 2025, and an adjusted profit of HK$48.1 million before interest, taxes, depreciation and amortization.

The expected increase in losses in the first half of 2026 and the decline in adjusted earnings before interest, taxes, depreciation and amortization are mainly due to: 1. Hong Kong's e-commerce business increased marketing, promotion and O2O store promotion expenses to expand market share and promote customer development and retention strategies, including 85% off promotions, discounts provided by personalized pricing plans, and marketing and promotion expenses related to CASHBACK; however, it was partially offset by the following factors 2. The total order volume of the Hong Kong e-commerce business increased 5.8% compared to the first half of 2025 , leading to an increase in gross profit contributions.