Neo-Neon (HKG:1868) expects to post a profit of between 4.5 million yuan and 5.5 million yuan for the six months ended June 30, down from 11.8 million yuan a year earlier, according to an Aug. 15 Hong Kong bourse filing.

The company said the decline was mainly due to lower gross profit caused by higher material costs from rising tariffs and freight expenses, as well as increased selling and distribution expenses driven by higher labor, promotion, and warehouse costs amid inflation.