Luen Thai Holdings Limited (Stock Code: 311) released an announcement indicating an expected turnaround in financial performance for the year ended 31 December 2025 (FY2025). According to the document, net profit attributable to owners is anticipated to range from approximately US$3.8 million to US$4.8 million, compared to a net loss of around US$34 million in the year ended 31 December 2024 (FY2024).

The announcement attributes this turnaround mainly to the absence of substantial non-recurring expenses of about US$30 million recorded in FY2024. During FY2024, these one-off expenses included severance payments, legal costs, settlement issues, the closure of a loss-making factory and the personal protective equipment business, provisions for inventory impairment and tax expenses, as well as losses associated with the disposal and deregistration of certain investments.

Additionally, gross margin improvements and reduced finance costs contributed to the expected profit. Finance costs reportedly fell from around US$13 million in FY2024 to roughly US$9 million in FY2025, in part due to favorable interest rates and strategic use of funding streams.

The audited annual results for FY2025 are expected to be published in late March 2026. The announcement stresses that these figures are based on unaudited management accounts and remain subject to final review. The document advises shareholders and potential investors to exercise caution when dealing in the company’s shares.