VISTAR HOLDINGS (08535) announced that the group anticipates its consolidated profit attributable to shareholders and total comprehensive income for the six months ending September 30, 2025, will decrease to no less than approximately HK$400,000. This represents a decline of about 62.5% compared to the net profit of around HK$1.1 million recorded in the same period ending September 30, 2024.

The board attributes this decrease primarily to rising material and labor costs, which have reduced the gross profit margin of the group's core business. The increase in cost of sales during the reporting period significantly outpaced revenue growth. However, this decline was partially offset by reduced administrative and other operating expenses, as well as an increase in the reversal of impairment losses on trade receivables and contract assets.