Jinbaotong (00320) issued a profit warning. It is expected that the net loss attributable to shareholders for the first half of the 26-27 fiscal year will be about HK$45 million to HK$55 million year-on-year from profit to loss

Zhitong Finance App News, Jinbaotong (00320) announced that the Group expects to obtain a net loss attributable to the Company's owners of approximately HK$45 million to HK$55 million in the first half of fiscal year 26 to 27, in contrast to the net profit attributable to the Company's owners of approximately HK$3.9 million in the six months ended September 30, 2025.

According to the announcement, the shift from profit to loss is mainly due to the combined effects of the following factors: the continued rise in the price of major raw materials and the appreciation of the currency where the Group's main production sites are located against the US dollar, leading to an increase in production and operating costs. Due to the time difference in price adjustments and market competition factors, the relevant cost increases were not fully passed on to customers, leading to a decline in the Group's gross margin; and an increase in operating costs associated with the commissioning of production facilities in Mexico and the increase in production capacity. The relevant costs were incurred throughout the first half of fiscal year 26 to 27, while the relevant costs were only incurred during the same period last year. The Group will continue to strive to adjust product prices appropriately according to market conditions, contract arrangements and progress of negotiations with customers, and continuously optimize the supply chain and cost structure to improve operational efficiency.