POWERWIN TECH (02405) expects a mid-term loss attributable to equity shareholders of approximately $1.4 million to $1.6 million.

POWERWIN TECH (02405) announced that based on its preliminary assessment of the unaudited consolidated management accounts for the six months ending June 30, 2026 (the "Current Period") and information currently available to the board, the Group expects revenue for the Current Period to be approximately $700,000 to $800,000, compared to revenue of $3.3 million for the six months ending June 30, 2025; and an expected loss attributable to equity shareholders of the Company of approximately $1.4 million to $1.6 million, compared to a loss attributable to equity shareholders of the Company of approximately $3.8 million for the six months ending June 30, 2025. After the sale of the Media Group on July 2025, the Group has gradually scaled down its standardized cross-border digital marketing services and has ceased providing such services within the six months ending June 30, 2026. Furthermore, in light of the severe market conditions, evolving industry dynamics, and the need for more efficient resource allocation, the Group has decided to integrate its customized digital marketing services with its SaaS-based digital marketing services. Given (i) the termination of standardized digital marketing services; (ii) the integration of the Group's digital marketing services; and (iii) the severe market conditions facing the digital marketing services industry, the Group expects a significant decrease in revenue during the Current Period compared to the revenue for the six months ending June 30, 2025. Following the sale, trade receivables and trade payables have significantly decreased, which has markedly improved the Group's working capital situation and reduced credit risks arising from defaults by marketers. This also led to a substantial reduction in the expected credit losses on trade receivables, resulting in a significantly decreased expected loss attributable to equity shareholders of the Company for the Current Period compared to the six months ending June 30, 2025. Building on its existing Adorado and Powershopy platforms, the Group has developed PowerTokens, an exclusive one-stop SaaS solution platform designed to serve as a centralized marketplace that aggregates large language models (LLMs) and artificial intelligence (AI) capabilities developed in mainland China, allowing global developers and enterprises to access these resources. PowerTokens aims to provide unified access to AI models, account management, usage metrics, billing management, and related technical services for global developers, content creators, SaaS companies, and enterprise clients. PowerTokens has currently launched external market promotion, user recruitment, and early commercialization activities.