LUEN THAI Holdings Limited (00311) has announced a positive profit forecast. The company expects to report a net profit attributable to owners of approximately $3.8 million to $4.8 million for the 2025 fiscal year (year ending December 31, 2025). This represents a significant turnaround from the net loss of approximately $34 million attributable to owners reported for the 2024 fiscal year (year ending December 31, 2024).

The Board of Directors attributes this anticipated shift from loss to profit primarily to the absence of significant non-recurring expenses of about $30 million, which negatively impacted the Group's performance in the 2024 fiscal year. These expenses incurred in fiscal 2024 included, but were not limited to: (a) severance payments and legal costs related to U.S. Customs laws and regulations, which arose in the first half of 2024; (b) the closure of an unprofitable factory in the People's Republic of China and the discontinuation of the personal protective equipment business within the apparel segment; (c) additional provisions for inventory write-downs and tax expenses; and (d) losses from the disposal of the Group's equity interest in a non-profit, partially-owned subsidiary and the derecognition of a joint venture.