NEXION TECH (08420) Issues Profit Warning, Anticipates Substantial Reduction in Shareholder Losses for 2025

Stock News03-17

NEXION TECH (08420) has announced that the Group expects to record a significant reduction in the loss attributable to its equity holders for 2025, to no more than HK$4 million. This compares to a loss attributable to equity holders of approximately HK$14.695 million in 2024. The Board of Directors attributes the anticipated decrease in losses primarily to the following factors: (i) The segment performance (adjusted EBITDA) of the Cybersecurity Solutions and IT Software Development division has turned around from a loss of approximately HK$3.665 million in the 2024 financial year to a profit of no more than HK$1.5 million in the 2025 financial year. This improvement is mainly due to an increase in revenue for this business segment from approximately HK$13.252 million in FY2024 to approximately HK$23.888 million in FY2025, an increase of about HK$10.636 million or 80.3%. (ii) The segment performance loss (adjusted EBITDA) of the Software-as-a-Service (SaaS) division (discontinued) decreased from approximately HK$7.291 million in FY2024 to no more than HK$0.3 million in FY2025. This reduction is primarily a result of scaled-back operational activities to minimize ongoing losses, coupled with a decrease in the provision for impairment losses on recognized intangible assets to zero (compared to approximately HK$3.859 million in FY2024).

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