KELFRED (01134) issues a profit warning. It is expected that the net loss for the fiscal year 2024 will be approximately HK$21.6 million.

KELFRED (01134) announced that the company is expected to incur a net loss of approximately HK$21.6 million for the year ending December 31, 2024, compared to a net profit of approximately HK$1.4 million for the year ending December 31, 2023. The board of directors believes that the expected net loss for the current reporting year is mainly due to: a decrease in the average selling price of eyeglass products resulting from intense market competition, leading to a reduction in gross profit margin from eyeglass product sales; one of the group's Chinese subsidiaries did not receive demolition compensation in the current reporting year, whereas it received approximately HK$10.9 million in the previous reporting year; and a slowdown in the depreciation of the Chinese yuan against the Hong Kong dollar, resulting in a decrease in foreign exchange gains in the current reporting year.