Vietnam Manufacturing and Export Processing (Holdings) Limited (VMEP) has issued a profit warning, projecting a net loss of approximately USD1.50 million for the six months ended 30 June 2026, versus a net profit of about USD0.04 million in the same period of 2025.

Management attributes the expected reversal primarily to two factors:

1. Softening sales environment: Intensified competition in Vietnam and a market shift toward electric vehicles, driven by government electrification policies, reduced demand for internal combustion engine motorcycles. Additional inventory adjustments by distributors in key export destinations further weighed on sales volume and revenue.

2. Operational deleverage: Lower production and sales volumes limited the ability to scale down fixed manufacturing expenses, raising unit cost allocations and compressing gross margins year-on-year.

The interim results are still under preparation and have not been audited or reviewed by external auditors. VMEP plans to publish its full interim financial report by the end of August 2026. Investors are advised to exercise caution when trading the company’s shares until the detailed figures are released.