KELFRED (01134) issues a profit warning, expecting a net loss of approximately HKD 12.1 million for the interim period, a year-on-year increase.

KELFRED (01134) announced that, based on the preliminary review of the group's unaudited consolidated management accounts for the six months ending June 30, 2026 (the reporting period) and the information currently available to the board of directors, the company expects to incur a net loss of approximately HK$12.1 million during the reporting period, compared to a net loss of approximately HK$4.7 million for the six months ending June 30, 2025 (the previous reporting period). The board believes that the anticipated increase in net loss is primarily due to a reduction in gross profit from sales of eyewear products. During the reporting period, intense market competition and rising production costs (partly due to the appreciation of the Renminbi, although some of this was offset by ongoing cost-saving measures) resulted in a decline in the average selling price of eyewear products, thereby affecting gross profit.