TOWRAY HLDGS (01692) issues profit warning, expecting a decrease of approximately 37.1% in shareholders' net profit for the first half of the year compared to the same period last year.

Townray Holdings (01692) announced that the group is expected to have unaudited profit attributable to owners of the company of approximately HK$18.9 million for the six months ended June 30, 2026, as compared to approximately HK$30.1 million for the six months ended June 30, 2025, representing a decrease of approximately HK$11.2 million or 37.1%. The board believes that the decrease in unaudited profit attributable to owners of the company is mainly due to (i) a decrease in group revenue; (ii) ongoing geopolitical tensions leading to a significant increase in direct raw material costs for the group, offset by a reduction in direct labor costs and indirect costs for the group; (iii) a shift from exchange gains for the six months ended June 30, 2025 to exchange losses for the current period, primarily due to the appreciation of the Chinese Yuan against the US Dollar; (iv) a reversal of impairment on trade receivables for the six months ended June 30, 2025 to a net impairment on trade receivables for the current period.