Vixtel Tech warns of widening losses in fiscal year

Hong Kong-listed Vixtel Tech (HKEX:1782) has issued a profit warning, projecting a net loss attributable to the parent company owners between RMB68.0 million and RMB76.0 million for the year ended December 31, 2024. This represents a substantial increase from the RMB47.2 million loss reported for the prior year. The company attributes the anticipated increase in losses to several factors, including decreased revenue and gross profit due to slower contract signings and project deliveries amid economic uncertainty, a reduction in government grants, and higher administration and selling expenses related to business development efforts. Vixtel Tech also recorded an impairment loss on intangible assets due to delays in its business plan. The company plans to release its annual results on March 25, 2025.