ELIFE HLDGS (00223) issues profit warning, expecting a net loss attributable to shareholders of approximately HK$98 million for the year.

ELIFE HLDGS (00223) announces that the group is expected to achieve (i) a gross profit of approximately HK$15.9 million for the financial year ending 31st March 2025, compared to approximately HK$31.9 million for the financial year ending 31st March 2024; and (ii) a loss attributable to company owners of approximately HK$98 million for the financial year ending 31st March 2025, compared to approximately HK$32 million for the financial year ending 31st March 2024. Based on current information, the decrease in gross profit is mainly due to the group strategically expanding its supply chain business and making strategic decisions to provide rebates to certain brand promotion customers based on sales volume, resulting in an increase in sales costs. The increase in the loss attributable to company owners for the financial year ending 31st March 2025 is mainly due to the following factors: (i) a one-off loss of approximately HK$40.6 million due to the sale of equity in Admiral Glory Global Limited; (ii) an increase in expected credit losses provision for trade and other receivables; (iii) impairment losses and write-offs of property, plant and equipment, and right-of-use assets; and (iv) an increase in sales expenses due to additional brand promotion activities and increased sales personnel compensation.