DAIDO GROUP (00544) issued a profit warning, expecting that the net loss attributable to shareholders in 2025 will be no less than approximately HK$72.1 million, an increase compared to the previous year.

DAIDO GROUP (00544) announced that the group is expecting a net loss attributable to equity holders of the company of not less than approximately HK$72.1 million for the financial year ending on December 31, 2025 (2025 fiscal year), compared to a net loss of approximately HK$40.2 million for the financial year ending on December 31, 2024. The board of directors believes that the increase in the expected net loss for the 2025 fiscal year is mainly due to (i) a decrease in revenue of approximately 26% from the cold storage and related services business; (ii) a decrease in revenue of approximately 57% from the food and beverage trade and sales business in mainland China; and (iii) a decrease in revenue of approximately 54% from other service income. The aforementioned decreases are mainly attributed to the challenging macroeconomic environment, which has weakened demand for the group's products and services. Additionally, the extension of the cold storage leasing agreement at the end of 2024 has led to an increase in financial expenses, further exacerbating the expected net loss.