YTO INTL EXP (06123) has announced an expected increase in net loss for the fiscal year ending December 31, 2025, compared to the corresponding period in 2024. The group forecasts a net loss ranging between approximately HKD 145 million and HKD 154 million for the year ending December 31, 2025, a significant rise from the net loss of about HKD 42 million recorded in the prior year ending December 31, 2024.
The primary reasons cited for the increased net loss include several key factors. Firstly, volatility in tariff policies within certain major economies has heightened uncertainty in cross-border trade. This has led to substantial fluctuations in demand and pricing within the international freight market, particularly in the international air freight sector, resulting in decreased profitability for freight operations. Secondly, as part of a strategic initiative to concentrate resources on core business activities, the company has proactively optimized its business structure. This involved strategically scaling back certain non-core operations characterized by low gross profit margins or extended cash collection cycles, which consequently led to a reduction in overall revenue and gross profit.
Furthermore, the group is continuing to advance its international development strategy. Efforts are focused on building global express delivery hub facilities and operational networks to create a secure, smooth, convenient, efficient, sustainable, autonomous, and controllable logistics supply chain system. This strategic push also involves applying advanced technologies such as artificial intelligence. Throughout the 2025 fiscal year, the group has persistently increased investment in attracting and developing international talent, establishing logistics hubs in key regions and critical markets, and strengthening control over core logistics infrastructure and resources. A comprehensive drive to transition from digitalization to intelligent operations is underway, reinforcing technological innovation as a key driver, with continued rises in research and development expenditure.
The announcement stated that despite facing periodic performance pressure, the group remains committed to its long-term development strategy. Active progress has been made in advancing infrastructure construction, acquiring key resources, and building core capabilities in pivotal countries and regions. Concurrently, the group is deepening operational measures and enhancing management efficiency to bolster its ability to navigate market uncertainties. These strategic investments and improvements in management effectiveness are expected to lay a solid foundation for the group's sustainable long-term growth in the future.