EAGLE NICE (02368) has announced a profit warning, expecting a significant decline of no more than 30% in the profit attributable to the company's owners for the financial year ending March 31, 2026, compared to the previous year's figure of HK$217 million. Based on currently available information, the board attributes the anticipated substantial decrease primarily to a significant downturn in the group's performance during the second half of the reporting year. Key contributing factors include: (i) increased production costs and a subsequent rise in the cost of sales. This resulted from the profound impact of U.S. government tariff policies on certain Southeast Asian countries where the group has production bases, which adversely affected the supply and production chains between the group's manufacturing bases in Mainland China and Southeast Asia; (ii) a decline in gross profit margin. During the reporting year, brand clients adopted a more conservative and cautious stance in price negotiations with the group due to severe cost pressures stemming from the aforementioned tariff policies, shifting consumer demand, and intense competition within the sportswear manufacturing industry; and (iii) a significant increase in raw material procurement and production costs at the group's Mainland China production bases, driven by the continuous appreciation of the Renminbi during the reporting period.