LEOCH INT'L (00842) issues profit warning, expecting a yearly shareholder loss of no more than approximately 300 million yuan, turning from profit to loss year-on-year.

LEOCH INT'L (00842) announced that, for the twelve months ended December 31, 2025, the attributable net profit of the parent company is expected to change from positive to negative compared to the previous year. The expected loss amount is not more than approximately RMB 300 million, mainly due to the following factors: The continued impact of additional import tariffs imposed by the US government on global trade since the second quarter of 2025 has led to a change in the group's order structure, resulting in a significant increase in export costs to the US; In 2025, the group is in the stage of improving production quality and expanding capacity, with new products being launched, and the adjustment of production lines has led to increased raw material consumption and a year-on-year increase in unit production costs; and in the first half of 2025, the attributable net profit of the parent company decreased by approximately 61.7% compared to the previous year, which has contributed to the decline in the full-year performance for 2025.