BEST LINKING (09882) issues profit warning, expecting a decrease of approximately 75% to 85% in net profit for 2024 compared to adjusted net profit for 2023.

BEST LINKING (09882) announced that it is expected to experience a decline of approximately 75% to 85% in net profit for the year 2024 compared to 2023 (adjusted for non-recurring expenses and donations), with a decrease of around HK$37.4 million. The Board of Directors believes that the decrease in net profit for the reporting period is primarily due to the following factors: (i) throughout the year 2024, market demand in the Hong Kong and Association of Southeast Asian Nations (ASEAN) region continued to decline, negatively impacting the Group's revenue. The decrease in market demand is mainly attributed to economic downturn, uncertainties in both the local and global economy, and a lack of momentum in the recovery of construction activities from the downturn. As a result, sales of roller bearings and mechanical components manufactured or procured by the Group have decreased. The decline in mechanical sales is also attributed to longer sales cycles for several customers than expected and delays in the commencement and completion of new construction projects; and (ii) the decrease in gross profit margin is attributed to changes in product mix, despite an increase in sales of new machinery and minerals (with lower profit margins), sales of roller bearings (with higher profit margins) have decreased.