"Profit Warning" TRAVEL EXPERT expects a loss of up to 500,000 yuan in the first half of the year

TRAVEL EXPERT (01235.HK) issued a profit warning, expecting a loss of no more than HKD 500,000 for the six months ending in September, compared to a profit of HKD 3 million from continuing operations in the same period last year. The shift from profit to loss is mainly due to business expansion, which has led to increased rental and employee costs from sales and distribution expenses; as the scale of operations continues to grow, there has been an increase in system development consulting fees and employee costs from administrative and other operating expenses during the period; and negative news from rumors of earthquakes in Japan in the first half of the year has resulted in a decline in revenue and gross profit from tourism-related products