LUEN THAI (00311) Announces Profit Growth, Expected to reach a net profit of approximately 3.8 to 4.8 million US dollars in 2025, reversing from a loss to a profit compared to the previous year.

LUEN THAI (00311) announced that it is expected to report a net profit attributable to owners of the company of approximately $3.8 million to $4.8 million for the fiscal year 2025 (year ending December 31, 2025), while the net loss attributable to owners of the company for the year ending December 31, 2024 (fiscal year 2024) was approximately $34 million. The Board of Directors believes that the turnaround from loss to profit in the group's performance expectations is mainly due to the absence of significant non-recurring costs amounting to approximately $30 million, which negatively impacted the performance in the fiscal year 2024. These costs incurred in the fiscal year 2024 include, but are not limited to: (a) severance and legal expenses related to issues with U.S. customs laws and regulations incurred in the first half of 2024; (b) the shutdown of a loss-making factory in China and the discontinuation of the personal protective equipment business in garment classification; (c) additional provisions for inventory impairment and tax expenses; and (d) losses from the sale of equity in a non-profit partially owned subsidiary of the group and the dissolution of a joint venture.