Luenthai Holdings (00311.HK): Expected to Return to Profit in FY2025 with Net Profit of US$3.8–4.8 Million
NewTimeSpace News: On February 5, 2026, Luenthai Holdings Limited (00311.HK) announced that based on a preliminary review of the information currently available to the Board of Directors, the Group’s results for the financial year ended December 31, 2025 are expected to turn from a loss to a profit.
The Company anticipates recording a profit attributable to owners of the company of approximately US$3.8 million to US$4.8 million for FY2025, compared with a net loss of approximately US$34 million in FY2024.
The improvement in results is mainly due to the following factors:
Significant Reduction in Non-Recurring Expenses
No material non-recurring expenses were incurred in FY2025, whereas such expenses amounted to approximately US$30 million in FY2024, which had a significant negative impact on the Company’s results. These expenses primarily included:
(a)Severance and legal costsrelated to issues under U.S. customs laws and regulations;
(b)Closure of a loss-making factory in Chinaand the termination of thepersonal protective equipment (PPE) businesswithin the garment segment;
(c)Additional provisions for inventory impairmentand tax expenses;
(d) Losses arising from thedisposal of equity interests in a non-profitable partially held subsidiaryand thewrite-off of a joint venture.
Increase in Gross Profit Margin and Decrease in Finance Costs
The successful resolution of U.S. customs-related issues has enhanced the Group’s gross profit margin performance. Meanwhile, benefiting fromlower interest ratesand thestrategic deployment of cash flows, finance costs decreased from approximately US$13 million in FY2024 to about US$9 million in FY2025.
The Company cautions that the information contained in this announcement is based on a preliminary assessment made with the information currently available (including unaudited management accounts), which has not yet been reviewed by the auditors or the audit committee and may be subject to subsequent adjustments. The final annual results are expected to be announced inlate March 2026.
