Starlite Holdings Limited (Starlite) has issued a profit warning, indicating that it expects to post a loss attributable to owners of the Company of no more than HK$107 million for the financial year ended 31 March 2026. This compares with a loss of approximately HK$27 million in the prior fiscal year, signalling a deterioration of up to HK$80 million year on year.

Management attributed the projected setback to several factors:

1. Revenue contraction: Orders from packaging customers and U.S. clients fell markedly amid intensified market competition and uncertainty surrounding U.S. trade tariffs, resulting in a substantial top-line decline.

2. Asset impairments: The Group expects to recognise impairment losses on property, plant and equipment and right-of-use assets totalling about HK$29 million.

3. Team Green division: Although the unit delivered higher sales, its losses widened due to greater spending on new product development and both online and offline promotional activities.

4. Production transition: Relocation of selected production lines to Malaysia has been completed, but full operating capacity has yet to be restored, limiting output and efficiency during the period.

5. Currency volatility: A swing from foreign-exchange gain to loss under “other gains and losses” further weighed on profitability.

Starlite is finalising its audited annual results for FY2026, which are scheduled for release by end-June 2026. The Board advises shareholders and potential investors to exercise caution when trading Starlite shares until the full results are announced.