Powerwin Tech Group Limited (02405) has released a profit warning for the financial year ended 31 December 2025, forecasting a sharp contraction in revenue and a reversal from profit to loss.

The Board expects FY2025 revenue to decline to approximately US$4.40 million–US$4.80 million, down from US$13.50 million in FY2024. Management also anticipates a loss attributable to equity shareholders of roughly US$4.30 million–US$4.70 million, compared with a US$0.60 million profit recorded a year earlier.

Management attributes the weaker performance to three main factors: 1. Clients’ significant cutbacks in digital advertising budgets amid global economic volatility and geopolitical uncertainties. 2. A deliberate reduction in the contribution from standardized digital-marketing services as the Group refocused on other business lines. 3. Higher bad-debt provisions taken in response to extended collection periods for certain customers.

These figures are based on the Group’s unaudited consolidated management accounts and may differ from the final audited results, which are scheduled for release in March 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.