HUA LIEN INT'L (00969) issued a profit warning, expecting a mid-term net loss of approximately HKD 5 million to HKD 15 million.

HUA LIEN INT'L (00969) announced that it expects the Group to record a net loss of approximately HKD 5 million to HKD 15 million for the six months ending June 30, 2026 (the reporting period), compared to a net loss of approximately HKD 13.1 million for the six months ending June 30, 2025. Overall, the Group's net loss for the reporting period is expected to remain at a similar level compared to the same period last year. Although the Group's net loss for the reporting period is not expected to differ significantly from the previous year, the Group's operational performance has noticeably weakened compared to the same period last year. The Board believes that this weakening is primarily due to the adverse and unpredictable weather conditions affecting Jamaica during the reporting period, coupled with the pressures of natural disasters and climate change, which have led to a decline in sugarcane yields, subsequently resulting in a decrease in sugarcane harvesting and crushing volumes. As a result, the revenue from the Group's sugar business segment for the reporting period is expected to significantly drop by approximately 64% to about HKD 26.5 million compared to the same period last year. Meanwhile, due to the reduction in production and sales scale, along with the decline in economies of scale, the unit production cost of raw sugar products has significantly increased.