PRECIOUS DRAGON (01861) issued a profit warning, expecting a net loss attributable to shareholders for the interim period not exceeding HKD 16 million, a loss compared to a profit in the same period last year.

PRECIOUS DRAGON (01861) announced that the Group expects to record a net loss attributable to shareholders not exceeding HKD 16 million for the six months ended June 30, 2026 (the Period), compared to a net profit attributable to shareholders of approximately HKD 52.7 million for the six months ended June 30, 2025. According to the information currently available to the Board, the Board believes that the expected shift from profit to loss is primarily due to: (i) the absence of the disposal gain of approximately HKD 14.3 million from the sale of a yacht, which was recorded in the same period of 2025; (ii) a decrease in e-commerce sales resulting in a gross profit decline of approximately 18.3% (despite a reduction in selling and distribution costs of about 48.3%); and (iii) recognition of an impairment loss of approximately HKD 31.6 million related to the production facility located in Thailand during the Period.