PACIFICTEXTILES (01382) Issues Profit Warning, Expects Interim Net Profit to Drop to HKD 72-82 Million

Stock News
2025/11/07

PACIFICTEXTILES (01382) announced that the group expects its net profit attributable to shareholders for the six months ending September 30, 2025 (reporting period) to range between HKD 72 million and HKD 82 million, compared to approximately HKD 107 million for the same period last year (six months ending September 30, 2024). The decline during the reporting period was driven by multiple factors, primarily due to reduced sales orders. A sharp drop in orders from April to June 2025 was the main trigger for the profit decline, following the United States' announcement of a significant tariff increase to 46% on imports from Vietnam. This led some U.S. clients to suspend or cancel orders placed with the group's Vietnam factories. Additionally, lower utilization rates of production facilities resulted in higher fixed cost amortization. The impact of U.S. import tariffs gradually eased starting July 2025, with the rate later adjusted to a lower 20%. The company's order levels have since recovered to March 2025 levels, while utilization rates at its two Vietnam factories rebounded to 80%-90%.

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