KELFRED (01134) has announced that, based on a preliminary review of the group's unaudited consolidated management accounts for the six months ending June 30, 2026, and information currently available to the board, the company expects to report a net loss of approximately HK$12.1 million for the current reporting period.

This compares to a net loss of about HK$4.7 million in the prior reporting period ending June 30, 2025. The board believes the expected increase in the net loss is primarily due to a decrease in gross profit from eyewear product sales.

During the current reporting period, intense market competition and rising production costs—driven by the appreciation of the Renminbi, partially offset by ongoing cost-saving measures—have led to a decline in the average selling price of eyewear products, thereby impacting gross profit.