STARLITE HOLD (00403) issues profit warning, expecting interim loss attributable to shareholders of not more than HK$55 million, a year-on-year increase

STARLITE HOLD (00403) announces that the Group is expected to record a loss attributable to owners of the Company of not more than HK$55 million for the six months ended 30 September 2026, compared with a loss attributable to owners of the Company of approximately HK$29 million in the corresponding period last year. The Board considers that the above loss is mainly attributable to: Amid the global economic downturn, which has affected consumer sentiment and weakened the consumer market, the Group's brand customers adopted a more conservative and prudent bargaining attitude towards the selling prices proposed to the Group during the period. Although sales increased during the period, intense competition in the packaging and paper products business caused profits to decline; The outbreak of conflict in the Middle East led to a continuous rise in crude oil prices, which drove up raw material prices and transportation costs, resulting in a decline in the Group's gross profit margin and an increase in selling and distribution expenses; The loss of certain quality customers in the Southeast Asia segment, as well as low production efficiency, led to an increase in losses; The impact of the appreciation of Renminbi (RMB) against Hong Kong dollars: the monthly average exchange rate of RMB against Hong Kong dollars appreciated by approximately 7% compared with September 2025. The appreciation of RMB during the period adversely affected the operating costs of the Group's factories located in mainland China.