Yue Yuen Industrial (Holdings) Limited expects profit attributable to owners for the three months ended 31 March 2026 to contract by 50%–55% year on year, falling from US$75.80 million in the prior-year period to an estimated US$34.11–37.90 million.

Management attributes the earnings deterioration to multiple operating headwinds:

1. Demand softness and reciprocal tariffs • Manufacturing revenue declined 5.5% versus the same period in 2025 as brand customers adopted more conservative ordering patterns amid macro-economic uncertainty. • A slight improvement in average selling price, driven by product-mix changes, was partly offset by tariff-sharing arrangements, generating operating deleverage.

2. Escalating labour expenditure • A low single-digit rise in headcount linked to capacity expansion, combined with region-wide wage increases, pushed unit labour costs higher.

3. Seasonal production bottlenecks • Overlapping Lunar New Year holidays in mainland China and Vietnam, alongside earlier-than-usual Ramadan and Eid al-Fitr holidays in Indonesia, disrupted production scheduling. • Resulting inefficiencies reduced throughput and further inflated manufacturing unit costs.

The Board is monitoring global economic and geopolitical developments—including potential shipping disruptions and raw-material volatility—and will continue to balance order flow with labour allocation to stabilise operations.

Finalised unaudited first-quarter results are scheduled for release on 13 May 2026. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.