Town Ray Holdings Limited (“Town Ray” or “the Group”) has issued a profit warning, projecting an unaudited net profit attributable to owners of approximately HK$18.90 million for the six months ended 30 June 2026. This compares with HK$30.10 million in the same period of 2025, representing a decline of about HK$11.20 million, or 37.1%.

Management cites four principal factors behind the earnings contraction: 1. Lower revenue during the period. 2. A substantial rise in direct material costs linked to sustained geopolitical tensions, only partly offset by reduced direct labour expenses and overhead. 3. A shift from foreign-exchange gains in the first half of 2025 to foreign-exchange losses in the current period, primarily due to Renminbi appreciation against the U.S. dollar. 4. A swing from a reversal of impairment on trade receivables in the prior year to a net impairment charge in the first half of 2026.

The figures are derived from unaudited consolidated management accounts and may be adjusted. Town Ray plans to publish its full interim results by late August 2026 and advises shareholders and potential investors to exercise caution when dealing in the company’s shares.