Zhengwei Group (HKG:2147) expects a post-tax net loss of at least 108 million yuan for the 18 months ended June 30, compared with a post-tax net profit of 67.5 million yuan in the year ended Dec. 31, 2023, a Monday Hong Kong bourse filing said.

Shares of the packaged food company were down 11% in Tuesday afternoon trading.

The firm attributed the forecast to a significant rise in cost of sales, outweighing the corresponding increase in revenue, leading to a swing to gross loss.

The firm is forecasting results for 18 months as it changed its financial year-end date to June 30 from Dec. 31 previously.