HENG TAI Consumer Products (00197) announced that it expects the group's revenue for the six months ending December 31, 2025, to decrease by 34% year-on-year, with gross profit down by 52%, but a net loss of approximately HKD 33.4 million, a year-on-year decline of 13%.

Company official website

The company stated that the main reason for the reduction in net loss was an increase of approximately HKD 3.8 million in unrealized investment fair value net gains year-on-year. In addition, the group successfully implemented several cost-cutting measures, resulting in a combined year-on-year reduction of approximately 19% in sales and distribution expenses and administrative expenses.

During the period, revenue and gross profit across all business segments recorded a decline due to the group's reduction of certain unprofitable import trade businesses. Furthermore, despite the continuous rise in procurement costs, it was still unable to raise the selling prices of imported fast-moving consumer goods and agricultural products.

The company also mentioned that it expects to record an impairment loss of HKD 5.7 million on receivables during the period