Carote Ltd (2549) announced that based on a preliminary review of its unaudited consolidated management accounts for the year ended 31 December 2025, revenue is expected to rise between 3% and 5% compared to the previous year. However, profit is anticipated to decline by approximately 25% to 35% over the same period.

According to the announcement, imposition of additional tariffs in the United States on steel and aluminum products in 2025 contributed to significantly higher production costs, leading to a reduced gross profit margin, particularly for exports to the U.S. market. Additionally, the depreciation of the U.S. dollar against the Renminbi in 2025 resulted in foreign exchange losses on USD-denominated revenue and accounts receivable.

Carote Ltd noted that despite these challenges, it still achieved revenue growth. Final annual results have yet to be audited or reviewed by the company’s auditors and are scheduled for release by the end of March 2026. The company advised shareholders and potential investors to exercise caution when dealing in its shares.