Acme International reports significant net loss amidst revenue decline

Acme International Holdings Limited announced its interim results for the six months ended June 30, 2025, reporting a net loss of HK$24.39 million, a significant downturn compared to a net profit of HK$4.48 million in the corresponding period of 2024. Revenue for the group decreased by 19.7% to HK$67.38 million from HK$83.93 million year-on-year. This decline was primarily attributed to reduced profit margins in the BMU Systems Business and negative revenue from the electricity trading business in Shandong, which recorded a negative HK$10.31 million.

Gross profit plummeted from HK$20.87 million in 2024 to HK$1.88 million in 2025, with the gross profit margin falling from 24.9% to 2.8%. Administrative expenses surged to HK$27.14 million from HK$12.74 million, largely due to the development of the Green Power Energy Business, including an acquisition in New Zealand. The group's gearing ratio, however, improved significantly, decreasing from 78.6% as at December 31, 2024, to 37.7% as at June 30, 2025, mainly due to a reduction in borrowings following a loan capitalisation.

Despite the overall loss, the Green Power Energy Business saw an increase in revenue in Guangdong and New Zealand, with New Zealand contributing HK$26.58 million. The company is actively expanding this segment in Southeast Asia. No interim dividend was recommended for the period.