POLYFAIR Holdings (08532) issues profit warning, expecting annual net loss of approximately HK$44.5 million to HK$54.5 million.

POLYFAIR HLDGS (08532) announced that the group is expected to incur a net loss of approximately HK$44.5 million to HK$54.5 million for the year ending March 31, 2026, compared to a net loss of approximately HK$133.1 million for the year ending March 31, 2025. The expected net loss is mainly due to the following reasons: (i) the group is expected to report a gross loss of approximately HK$100,000 for the year, compared to a gross loss of approximately HK$83.3 million in the previous fiscal year; (ii) the total impairment loss on various financial assets of the group (including trade receivables, contract assets, deposits and other receivables) recognized by the expected credit loss model is estimated to be not less than HK$34 million, higher than the impairment loss recognized in the previous fiscal year of approximately HK$23 million using the same model; (iii) the group's financial costs for the reporting year are expected to be not less than HK$5.2 million, compared to approximately HK$8.5 million in the previous fiscal year; (iv) the group's administrative expenses for the reporting year are expected to be not less than HK$11 million, compared to approximately HK$20.3 million in the previous fiscal year.