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SoftMedx flags large accounting loss on debt-for-equity deal but underlying profit rises

Story Highlights
  • SoftMedx expects a HK$405 million annual loss driven by a one-off, non-cash fair value hit from discounted shares issued for debt settlement.
  • Excluding this exceptional item, SoftMedx’s underlying net profit would rise to about HK$10 million, though investors are urged to trade the shares cautiously.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
SoftMedx flags large accounting loss on debt-for-equity deal but underlying profit rises

Meet Samuel – Your Personal Investing Prophet

An announcement from China Wah Yan Healthcare ( (HK:0648) ) is now available.

SoftMedx Healthcare Limited has warned that it expects to report a significant loss of about HK$405 million for the year ended 31 December 2025, driven by a one-off, non-cash fair value loss of roughly HK$412 million related to the issue of 1.8 billion new shares for loan settlement at HK$0.01 each, versus the prevailing market price of HK$0.239. The company stressed that this accounting loss affects only its profit and loss and equity statements, with no impact on balance sheet, cash flow or net asset value, and noted that excluding this exceptional item, it would have booked a net profit of around HK$10 million, up from HK$6.9 million a year earlier, while urging investors to await the finalized audited results and exercise caution when trading its shares.

More about China Wah Yan Healthcare

SoftMedx Healthcare Limited operates in the healthcare sector through a group structure in Hong Kong. The company is listed on the Stock Exchange of Hong Kong and is overseen by a board comprising one executive director and three independent non-executive directors, reflecting a standard governance framework for a listed healthcare group.

Average Trading Volume: 2,294,419

Technical Sentiment Signal: Sell

Current Market Cap: HK$605.9M

For a thorough assessment of 0648 stock, go to TipRanks’ Stock Analysis page.

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