LUEN THAI (00311) announced its interim results for the six months ended June 30, 2025. The group recorded revenue of US$296 million, representing a decrease of 2.86% year-over-year. Net profit attributable to the company's shareholders reached US$373,000, compared to a loss of US$9.728 million in the same period last year. Earnings per share stood at 0.04 US cents.

The improvement in the group's financial performance was primarily attributed to the following factors: No non-recurring general, administrative and legal expenses related to US customs laws and regulations were incurred during the six months ended June 30, 2025, whereas approximately US$3.9 million in related expenses were incurred in the same period of 2024. These expenses mainly included severance payments to laid-off former employees as the group made management decisions to reduce long-term operating costs at its manufacturing facilities due to the adverse impact of these matters.

With the resolution of these matters and the continued effectiveness of stringent cost control measures implemented by the group's management, the group's overall gross margin increased by 1.2 percentage points to 13.9%. Additionally, due to declining interest rates and strategic allocation of funds, finance costs decreased from approximately US$6.412 million in the same period of 2024 to approximately US$4.795 million for the six months ended June 30, 2025.