CAROTE LTD (02549) issues profit warning, expecting a year-over-year decrease in profit of approximately 25% to 35% in 2025.

CAROTE LTD (02549) announced that the group expects to achieve a year-on-year revenue growth of approximately 3% to 5% by 2025, with a decrease in profit of about 25% to 35%. The announcement stated that the expected decrease in profit for the current year is mainly due to the following factors: Impact of US tariffs: The United States imposed additional tariffs on steel and aluminum products imported from China in 2025, leading to a significant increase in the selling costs of the group's main product lines exported to the US. As a result, the gross profit margin of the region's business decreased compared to the previous year. The group has taken measures to alleviate these impacts, including selective price increases and adjustments to operational strategies. Depreciation of the US dollar: The US dollar depreciated against the Chinese Renminbi in 2025, resulting in foreign exchange losses when the group's income and accounts receivable denominated in US dollars were converted to Renminbi. Although this further squeezed the group's profit margin, the group still achieved positive revenue growth in the current year.