TOP FORM INT'L (00333) issues profit warning, expecting a net loss of no more than HK$40 million in the mid-term.

TOP FORM INT'L (00333) announced that the group expects to incur a net loss of not more than HKD 40 million for the six months ending December 31, 2025, compared to a net loss of HKD 15.8 million for the same period in 2024. The board of directors believes that the group's expected loss is mainly due to the following factors: a significant decrease in revenue, as a result of reduced orders from major customers reflecting more cautious and active inventory management measures taken by customers in the backdrop of increased geopolitical uncertainties, global trade environment volatility, and expectations of price adjustments potentially affecting consumer demand; and a decline in gross profit margin, mainly attributed to underutilized production capacity leading to insufficient allocation of fixed costs, as well as a product mix skewed towards low-margin products.