SMC Electric Limited issued a profit warning on 16 July 2026, stating that it expects to record a loss attributable to shareholders of between HK$2.00 million and HK$5.00 million for the six months ended 30 June 2026. The guidance contrasts sharply with a profit of HK$12.90 million reported in the corresponding period of 2025, implying a negative swing of HK$14.90 million to HK$17.90 million year on year.

Management attributed the turnaround primarily to a significant decline in gross profit caused by three factors: 1) the conflict between the United States and Iran, which halted sales to the Middle East market and pushed up raw-material costs; 2) delayed shipment of certain new products due to design updates, deferring revenue recognition to the second half of 2026; and 3) softened market demand amid a challenging economic environment, leading to reduced customer orders.

The figures are based on unaudited management accounts and remain subject to review and possible adjustment. The company intends to publish its full interim results by the end of August 2026 and advised shareholders and potential investors to exercise caution when dealing in its shares.