ARTS OPTICAL issued a profit warning, expecting a mid-term loss attributable to shareholders of approximately HKD 12 million to 20 million, a year-on-year turnaround from profit to loss
ARTS OPTICAL issued a profit warning, expecting a mid-term loss attributable to shareholders of approximately HKD 12 million to 20 million for the period ending June 30, 2025, compared to a profit of approximately HKD 2.5 million in the same period last year. The reasons for the loss include the impact of U.S. tariff policies, increased employee costs and promotional expenses, as well as rising financing costs
According to the announcement from Zhitong Finance APP, ARTS OPTICAL (01120) expects to incur a net loss attributable to the company's owners of between HKD 12 million and HKD 20 million for the six months ending June 30, 2025, compared to a net profit attributable to the company's owners of approximately HKD 2.5 million for the same period in 2024.
The board of directors believes that the reasons for the expected net loss attributable to the company's owners are mainly due to the following factors:
The U.S. tariff policy has not only severely disrupted trade between the U.S. and China but has also impacted the global supply chain, leading to increased operating costs for establishing production facilities in Vietnam and Malaysia;
The development of the eyewear frame distribution and lens business in China and Southeast Asia has resulted in a significant increase in employee costs, promotional and exhibition expenses; and
The group has financed the establishment of production bases outside of China through bank loans, resulting in a substantial increase in financing costs
