Great Harvest Holdings (HKEX: 03683) has announced a profit warning.

The company's board of directors wishes to inform shareholders and potential investors that the group expects to record a loss attributable to the company's owners of not less than approximately US$6 million for the 2026 financial year. This represents a decrease of about US$4.4 million, or 42.3%, compared to the loss attributable to the company's owners of approximately US$10.4 million for the year ended March 31, 2025.

The significant reduction in the loss attributable to owners for the 2026 financial year is primarily attributed to several key factors.

Firstly, the group achieved a gross profit of approximately US$0.4 million in the 2026 financial year, a notable turnaround from the gross loss of about US$1.1 million recorded in the 2025 financial year, representing an improvement of around US$1.5 million.

Secondly, the loss arising from the disposal of property, plant, and equipment decreased by approximately US$2.4 million.

Thirdly, for the 2026 financial year, an impairment loss reversal of about US$2.1 million was recognized for property, plant, and equipment. This contrasts with an impairment loss provision of roughly US$6.9 million for the same assets in the 2025 financial year.

Finally, the 2025 financial year included non-recurring gains: a US$3.2 million gain from the modification of convertible bonds and a US$4 million reversal of an expected penalty provision for convertible bonds. The 2026 financial year did not record these two items of income.