YTO INTL EXP (06123) issued a profit warning, expecting a net loss of approximately HK$37-46 million in 2024.

YTO INTL EXP (06123) announced that the group is expected to incur a net loss ranging from approximately 37 million to 46 million Hong Kong dollars for the year ending December 31, 2024, compared to a net profit of approximately 96.5 million Hong Kong dollars for the year ending December 31, 2023. This net loss and year-on-year decrease are mainly due to the severe macroeconomic situation, increasing price pressures, and a decrease in the overall gross profit margin of air freight and international express business, leading to a decrease in the group's gross profit for air freight and international express. In 2024, the company made partial adjustments to strategic resource allocation based on international economic conditions and industry development changes, further focusing on core business and key regions, and exiting from certain non-core joint venture equity, resulting in one-time investment disposal losses. Nevertheless, the company actively adjusted its business and operational strategies in 2024, and the operational quality improved compared to the previous year.