Yue Yuen Industrial (0551) said it expects first-half 2026 net profit to fall by about 55% to 60% year on year, according to Ming Pao. The company said first-half 2025 net profit was about $171 million. Yue Yuen said the decline mainly reflects multiple challenges in its manufacturing business, including weak demand that reduced sales volume, along with rising costs and pressure on production efficiency. The company said these factors hurt gross margin in its manufacturing segment during the period.