HENG HUP (01891) issues a profit warning, expecting a decrease of approximately 40% to 50% in shareholders' share of comprehensive income for the year 2025.

HENG HUP (01891) announced that compared to the 2024 fiscal year, the Group is expected to reduce the comprehensive profit attributable to owners of the company by approximately 40% to 50% for the fiscal year ending December 31, 2025. The expected decrease in the Group's comprehensive profit is mainly due to the average selling price of black scrap metal in the 2025 fiscal year, which has decreased, leading to a reduction in the Group's revenue compared to the 2024 fiscal year. Although the Group's cost of goods sold decreased in the 2025 fiscal year, mainly due to the decrease in procurement costs of scrap materials with the current market prices, and the gross profit margin slightly improved compared to the previous fiscal year, these improvements are not enough to offset the impact of the decrease in revenue. In addition, in the 2025 fiscal year, the Group's transportation costs significantly increased, further affecting the Group's overall profitability.