Denghui Holdings (01692) Fa Ying Guang expects profit attributable to shareholders to decrease by about 37.1% year-on-year in the first half of the year

According to Zhitong Finance App, Denghui Holdings (01692) announced that the profit attributable to unaudited company owners is expected to be approximately HK$18.9 million in the six months ending June 30, 2026, compared with the profit attributable to unaudited company owners of about HK$30.1 million for the six months ending June 30, 2025, a decrease of about HK$11.2 million or about 37.1%. The board of directors believes that the reduction in profit attributable to unaudited company owners during the period was mainly due to (i) a decrease in the Group's revenue; (ii) a sharp increase in the Group's direct raw material costs due to continued geopolitical tension, which was offset by a reduction in the Group's direct labor costs and indirect costs; (iii) the transfer of exchange earnings for the six months ending June 30, 2025 to exchange losses during the period of exchange losses mainly due to the appreciation of RMB against the US dollar; (iv) the net transfer back of trade receivables impairment for the six months ended June 30, 2025 .