TIME WATCH (02033) issues a profit warning, expecting an annual loss attributable to shareholders of approximately HK$80 million to approximately HK$83 million, an increase year-on-year.

TIME WATCH (02033) has announced that the Group expects a loss attributable to owners of the Company for the 2026 financial year to range from approximately HK$80 million to approximately HK$83 million, compared with a loss attributable to owners of the Company of approximately HK$17.5 million for the year ended 30 June 2025. The Board considers that these changes are primarily due to: (i) a decrease of approximately 12% in the Group's revenue for the 2026 financial year compared with the 2025 financial year, mainly because global trade frictions weakened consumer sentiment in the retail market of the People's Republic of China, thereby adversely affecting the local economy and employment growth; (ii) impairment losses on property, plant and equipment and right-of-use assets, as well as provisions for onerous contracts in respect of certain points of sale relating to the underperformance in the 2026 financial year due to the weak retail market in China; and (iii) a decrease in other income, gains and losses, which was due to a decrease in interest income, losses from changes in fair value of financial assets at fair value through profit or loss, and net exchange losses.