CARRY WEALTH (00643) issues profit warning, expecting net losses to significantly increase to approximately HK$46.9 million by 2025.

CARRY WEALTH (00643) announced that it expects a significant increase in net loss for the financial year ending December 31, 2025, to approximately HK$46.9 million, compared to a loss of about HK$33.7 million for the financial year ending December 31, 2024. Based on available information, the group anticipates a substantial increase in net loss for the financial year ending December 31, 2025, mainly due to the following factors: a significant decline in revenue of around 52.5%, primarily attributed to a significant decrease in orders from the group's major customers in the United States and Europe, mainly due to changes in their procurement strategies under macroeconomic pressures; a decrease in gross profit margin, despite the strategic shift of production bases to Southeast Asia, as the supply chain and subcontractor costs continue to face inflationary pressures; and a shift in the group's product mix, with an increase in woven products and a corresponding decrease in knitted products, as the group's subcontracting factories focus more on knitted products, which typically bring higher profit margins to the group.