BEST LINKING Issues Profit Warning, Anticipates Annual Net Loss

Stock News
Feb 12

BEST LINKING (09882) has announced an expected net loss for the fiscal year ending December 31, 2025. The projected loss is estimated to be between HK$2.5 million and HK$3.8 million. This represents a significant downturn compared to the net profit of approximately HK$6.3 million recorded in the previous fiscal year ending December 31, 2024, indicating a profit decrease of about 140% to 160%. The anticipated decline in profitability is primarily attributed to several key factors. A reduction in gross profit margin resulted from a shift in the product mix, characterized by lower sales of slewing rings, which carry higher margins, and increased sales of new machinery and minerals, which have lower margins. Furthermore, a loss of approximately HK$3 million was incurred due to changes in surrender values from investments in a life insurance plan. Additionally, selling and distribution expenses rose by about HK$1.5 million, driven by marketing costs associated with the development of OEM businesses in Japan and China during the reporting period.

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