Core Viewpoint - Hengfu Holdings (00643) anticipates a significant increase in net loss to approximately HKD 30 million for the six months ending June 30, 2025, compared to a loss of about HKD 12 million for the same period ending June 30, 2024 [1] Summary by Relevant Categories Financial Performance - The company expects a net loss of approximately HKD 30 million for the upcoming six months, a substantial increase from the previous loss of about HKD 12 million [1] - Revenue is projected to decline significantly by approximately 70% due to a notable decrease in order volume from major clients in the US and Europe [1] Operational Challenges - The decline in revenue is attributed to changes in procurement strategies by clients, compounded by broader macroeconomic challenges [1] - The company's gross margin has decreased, primarily due to ongoing inflationary pressures on supply chain and subcontractor pricing, despite a strategic shift to Southeast Asia [1] Product-Specific Issues - There has been a reduction in sales volume of higher-margin children's clothing, which has negatively impacted overall profitability [1] - The idle costs associated with the Heshan facility are also affecting financial performance, as the facility will not handle any further production orders after completing existing ones in May 2024 [1]
恒富控股发盈警，预期中期取得大幅扩大的净亏损约3000万港元