Denghui Holdings (01692.HK) issued a profit warning, expecting a decrease of approximately 37.1% in net profit attributable to shareholders in the first half of the year compared to the same period last year.

Zhixin Finance and Economics APP News, Denghui Holdings (01692.HK) announced that the group is expected to achieve unaudited attributable profit to owners of the company of approximately HK$18.9 million for the six months ended June 30, 2026, compared to approximately HK$30.1 million for the six months ended June 30, 2025, a decrease of approximately HK$11.2 million or about 37.1%. The board of directors believes that the decrease in unaudited attributable profit to owners of the company during the period is mainly due to (i) a decrease in the group's income; (ii) continued geopolitical tensions leading to a substantial increase in the group's direct material costs, offset by a decrease in the group's direct labor costs and indirect costs; (iii) the exchange gains for the six months ended June 30, 2025 turning into exchange losses during the period, mainly due to the appreciation of the RMB against the US dollar; and (iv) a change from a net reversal of impairment on trade receivables for the six months ended June 30, 2025 to a net impairment on trade receivables during the period.