---
title: "HENG TAI issues a profit warning, expecting a mid-term net loss of approximately HKD 33.4 million"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/275731583.md"
description: "HENG TAI issued a profit warning, expecting a net loss of approximately HKD 33.4 million for the six months ending December 31, 2025, a decrease of about 13% compared to the previous fiscal period. The company anticipates a revenue and gross profit decline of approximately 34% and 52%, respectively. The main reasons include challenges in the economic environment, intensified market competition, and rising procurement costs. Despite implementing cost-cutting measures, it has still been unable to raise prices"
datetime: "2026-02-12T09:24:28.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/275731583.md)
  - [en](https://longbridge.com/en/news/275731583.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/275731583.md)
---

# HENG TAI issues a profit warning, expecting a mid-term net loss of approximately HKD 33.4 million

According to the announcement from HENG TAI (00197), it is expected that the group's unaudited consolidated financial performance for the six months ending December 31, 2025, will record a revenue decrease of approximately 34% and a gross profit decrease of approximately 52% compared to the previous fiscal period.

The board of directors noted that the group's operating environment remains challenging due to several reasons: (i) the economy of the People's Republic of China continues to be dragged down by the real estate and debt crisis, leading to weak market demand; (ii) ongoing uncertainties brought about by unpredictable foreign trade policies in major countries continue to suppress global economic growth and international trade; (iii) intensified market competition, as domestic brands continue to engage in fierce competition through low-price strategies and extensive advertising activities; and (iv) rising procurement costs, but due to intense market competition, the group has been unable to pass on the increased costs to customers.

In this context, the group has strategically reduced certain unprofitable import goods trading businesses to lower operating costs and expenses. Furthermore, in order to remain competitive in a fiercely competitive market environment, despite rising procurement costs, the group has still been unable to raise the prices of imported fast-moving consumer goods and agricultural products. Therefore, for the six months ending December 31, 2025, both revenue and gross profit across various business segments have recorded declines.

Despite the aforementioned decline in revenue and gross profit, the board expects that the group's net loss for the six months ending December 31, 2025, will be approximately HKD 33.4 million, a decrease of about 13% compared to the performance of the previous fiscal period. The main reason for the reduction in net loss is the increase of approximately HKD 3.8 million in unrealized investment fair value net gains compared to the previous fiscal period. In addition, the group has successfully implemented and adopted several cost-cutting measures, reducing total sales and distribution expenses and administrative expenses by approximately 19% compared to the previous fiscal period by streamlining unprofitable goods trading businesses.

However, given the current uncertain economic situation, the group continues to adopt a prudent approach in handling accounts receivable with higher collection risks. Therefore, the board expects that for the six months ending December 31, 2025, the group will record an impairment loss of approximately HKD 5.7 million on accounts receivable and other receivables

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