Powell Max Limited Announces First Half 2025 Unaudited Financial Results

Rhea-AI Summary

Powell Max Limited (NASDAQ: PMAX), a Hong Kong-based financial communications services provider, reported its H1 2025 unaudited financial results. The company's revenue increased by 5.3% to HK$23.9 million (US$3.1 million), primarily driven by the acquisition of Miracle Media in February 2025.

However, the company recorded a significant net loss of HK$20.4 million (US$2.6 million), compared to a profit of HK$0.8 million in H1 2024. This decline was attributed to a 4.9x increase in general and administrative expenses to HK$29.4 million and a 10% rise in selling and distribution expenses to HK$3.3 million. Basic and diluted loss per share was HK$1.07, compared to earnings of HK$0.06 per share in the previous year.

Positive

• Revenue growth of 5.3% year-over-year to HK$23.9 million
• Strategic acquisition of Miracle Media contributing HK$1.5 million to revenue
• Increased investment in sales team and marketing to maintain market presence

Negative

• Significant net loss of HK$20.4 million compared to profit in H1 2024
• 4.9x increase in general and administrative expenses to HK$29.4 million
• 10% increase in selling and distribution expenses amid reduced capital market activities
• Basic and diluted loss per share of HK$1.07 compared to earnings of HK$0.06 in prior year

Insights

Financial Analyst

Powell Max's revenue grew 5.3%, but swung to HK$20.4M loss due to 4.9x increase in administrative expenses following acquisition.

Powell Max's H1 2025 results reveal concerning financial trends despite modest revenue growth. While the company achieved a 5.3% revenue increase to HK$23.9 million, this growth was primarily attributable to the HK$1.5 million contribution from its newly acquired Miracle Media subsidiary. The alarming development is the substantial net loss of HK$20.4 million, contrasting sharply with the HK$0.8 million profit in H1 2024.

This dramatic profitability decline stems from a 490% surge in general and administrative expenses, which ballooned to HK$29.4 million. Several factors drove this increase: integration costs from the Miracle Media acquisition, expenses related to a standby equity purchase agreement, and elevated professional/post-listing fees. The company also boosted selling and distribution expenses by 10% to HK$3.3 million to maintain market presence amid reduced capital market activities in Hong Kong.

The significant deterioration in profitability has directly impacted shareholder value, with earnings per share plummeting from a positive HK$0.06 to a loss of HK$1.07. This represents a concerning erosion of shareholder equity. While some administrative expenses may be non-recurring, the magnitude of the loss raises questions about the strategic value of the Miracle Media acquisition and whether the company can return to profitability in the near term.

HONG KONG, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Powell Max Limited (Nasdaq: PMAX) (the “Company” or “Powell Max”), a financial communications services provider headquartered in Hong Kong, today announced its unaudited interim condensed financial results for the six months ended June 30, 2025.

Overview:

• Revenue was HK$23.9 million (US$3.1 million) for the six months ended June 30, 2025, representing an increase of 5.3% for the same period in 2024.
  
  
• Net loss was HK$20.4 million (US$2.6) for the six months ended June 30, 2025, as compared with the profit of HK$0.8 million for the same period in 2024.

Six Month Financial Results Ended June 30, 2025

Revenue. Revenue increased by 5.3% from HK$22.7 million for the six months ended June 30, 2024 to HK$23.9 million (US$3.1 million) for the six months ended June 30, 2025, which was mainly contributed by the revenue of HK$1.5 million (US$0.2 million) from Miracle Media Production Limited (“Miracle Media”), following the completion of the acquisition of Miracle Media on February 28, 2025.

General and administrative expenses. General and administrative expenses increased by 4.9 times from HK$6.0 million for the six months ended June 30, 2024 to HK$29.4 million (US$3.8 million) for the six months ended June 30, 2025, which was mainly due to (i) an increase in the number of staff and the general and administrative expenses after the completion of acquisition of Miracle Media on February 28, 2025, (ii) the incurrence of issuance expenses relating to the standby equity purchase agreement entered into in November 2024, and (iii) an increase in the professional fee and post-listing expenses in related thereto.

Selling and distribution expenses. Selling and distribution expenses increased by 10.0% from HK$3.0 million for the six months ended June 30, 2024 to HK$3.3 million (US$0.4 million) for the six months ended June 30, 2025, which was mainly due to an increase in the number of staff in our sales team and an increase in other expenses on business development and marketing. In light of the reduction of capital market activities in Hong Kong, we have engaged extra resources on sales and marketing with the view to maintain our market presence.

Net loss. Net loss for the period ended June 30, 2025 was HK$20.4 million (US$2.6 million), as compared with the net profit of HK$0.8 million for the same period in 2024, which was mainly due to the increase in general and administrative expenses, and selling and distribution expenses.

Basic and diluted loss per share. Basic and diluted loss per share was HK$1.07 (US$0.14) per ordinary share for the six months ended June 30, 2025, as compared to a basic and diluted earning per share of HK$0.06 per ordinary share for the six months ended June 30, 2024.

About Powell Max Limited

Powell Max Limited is a financial communications services provider headquartered in Hong Kong. The Company engages in the provision of financial communications services that support capital market compliance and transaction needs for corporate clients and their advisors in Hong Kong. Its financial communications services cover a full range of financial printing, corporate reporting, communications and language support services from inception to completion, including typesetting, proofreading, translation, design, printing, electronic reporting, newspaper placement and distribution. The Company’s clients consist of domestic and international companies listed in Hong Kong, together with companies who are seeking to list in Hong Kong, as well as their advisors.

Exchange Rate Information

The Company is a holding company with operations conducted in Hong Kong through JAN Financial Press Limited (“JAN Financial”) and Miracle Media, its operating subsidiaries. The reporting currency of JAN Financial and Miracle Media is Hong Kong dollars. The Hong Kong dollar is pegged to the U.S. dollar at a range of HK$7.75 to HK$7.85 to US$1. Unless otherwise noted, all translations from Hong Kong dollars to United States Dollars in this press release were calculated the noon middle rate of US$1 — HK$7.8499, as published in the H.10 statistical release of the Board of Governors of the Federal Reserve System on June 30, 2025. No representation is made that the HK$ amount represents or could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate.

Forward-Looking Statements

This press release contains certain forward-looking statements. Words such as “will,” future,” “expects,” “believes,” and “intends,” or similar expressions, are intended to identify forward-looking statements. Forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Rounding Amounts and Percentages

Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding.

For investor and media inquiries, please contact:

Company Info:

Powell Max Limited

Investor Relations

ir@janfp.com

(852) 2158 2888

POWELL MAX LIMITED AND ITS SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2024 AND UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2025
		As of December 31, 2024 (audited)				As of June 30, 2025 (unaudited)
		HK$				HK$				US$
ASSETS
Non-current assets
Goodwill			—				28,116,846				3,581,809
Property, plant and equipment			4,253,686				7,861,254				1,001,447
Total non-current assets			4,253,686				35,978,100				4,583,256
Current assets
Trade and other receivables			16,096,160				15,018,674				1,913,231
Cash and bank balances			42,222,014				8,894,909				1,133,124
Total current assets			58,318,174				23,913,583				3,046,355
Total assets			62,571,860				59,891,683				7,629,611
LIABILITIES AND EQUITY
Current liabilities
Trade and other payables			12,990,458				11,930,106				1,519,778
Contract liabilities			1,310,435				622,226				79,265
Bank borrowings			3,845,863				3,368,086				429,061
Lease liabilities			1,376,122				2,910,354				370,751
Derivative			6,756,516				—				—
Convertible promissory notes			13,860,647				—				—
Total current liabilities			40,140,041				18,830,772				2,398,855
Non-current liabilities
Trade and other payables			150,000				150,000				19,109
Lease liabilities			1,014,182				3,357,693				427,737
Total non-current liabilities			1,164,182				3,507,693				446,846
Total liabilities			41,304,223				22,338,465				2,845,701
Equity attributable to owners of the Company
Share capital			11,457				15,253				1,943
Accumulated losses			(33,754,822	)			(54,477,277	)			(6,939,869	)
Reserves			55,011,002				92,015,242				11,721,836
Total equity			21,267,637				37,553,218				4,783,910
Total liabilities and equity			62,571,860				59,891,683				7,629,611

POWELL MAX LIMITED AND ITS SUBSIDIARIES UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025
		Six months ended June 30,
		2024 (unaudited)				2025 (unaudited)
		HK$				HK$				US$
Revenue			22,732,219				23,943,656				3,050,186
Cost of sales			(12,549,020	)			(12,938,874	)			(1,648,285	)
Gross profit			10,183,199				11,004,782				1,401,901
Other income and gain			26,247				2,628,073				334,790
General and administrative expenses			(6,000,158	)			(29,440,811	)			(3,750,469	)
Selling and distribution expenses			(3,005,905	)			(3,347,044	)			(426,381	)
Allowance of expected credit loss - trade receivables			(228,666	)			(730,257	)			(93,028	)
Profit/(Loss) from operations			974,717				(19,885,257	)			(2,533,187	)
Finance costs			(193,581	)			(479,994	)			(61,146	)
Profit/(Loss) before income tax			781,136				(20,365,251	)			(2,594,333	)
Income tax expense			—				—				—
Profit/(Loss) for the period			781,136				(20,365,251	)			(2,594,333	)
Other comprehensive income/(loss):
Exchange differences on translation foreign operations			(12,362	)			(357,204	)			(45,504	)
Total comprehensive income/(loss) for the period			768,774				(20,722,455	)			(2,639,837	)
Earnings/(Loss) per share attributable to owners of the Company
Basic and diluted			0.062				(1.068	)			(0.136	)
Weighted average number of ordinary shares
Basic and diluted			12,500,000				19,071,771				19,071,771

FAQ

What were Powell Max's (PMAX) key financial results for H1 2025?

Powell Max reported revenue of HK$23.9 million (US$3.1 million), up 5.3% YoY, but recorded a net loss of HK$20.4 million (US$2.6 million) compared to a profit of HK$0.8 million in H1 2024.

How did the Miracle Media acquisition impact PMAX's H1 2025 results?

The Miracle Media acquisition, completed on February 28, 2025, contributed HK$1.5 million (US$0.2 million) to Powell Max's revenue but also increased general and administrative expenses due to additional staff and operational costs.

What caused Powell Max's net loss in H1 2025?

The net loss was primarily due to a 4.9x increase in general and administrative expenses to HK$29.4 million, higher professional fees, post-listing expenses, and a 10% increase in selling and distribution expenses.

What was PMAX's earnings per share for H1 2025?

Powell Max reported a basic and diluted loss per share of HK$1.07 (US$0.14), compared to earnings of HK$0.06 per share in H1 2024.

How is Powell Max addressing the reduction in Hong Kong capital market activities?

The company has increased investment in sales and marketing, including expanding its sales team and increasing business development expenses to maintain market presence despite reduced capital market activities.