Rongyang Industrial (02078) is expected to lose about HK$54.2 million in the medium term

According to the Zhitong Finance App, Rongyang Industrial (02078) issued an announcement. It is expected that the Group will record a loss of about HK$54.2 million for the six months ending June 30, 2026, and a loss of about HK$26.4 million for the six months ending June 30, 2025.

The Board believes that the increase in loss expectations is mainly due to a sharp drop in revenue from approximately HK$243 million to approximately HK$138 million, leading to a sharp reduction in gross profit from HK$28.7 million to HK$5.1 million. For the six months ended June 30, 2026, the Group continues to be affected by the fact that its previous largest solar panel product customer has not placed new orders since the second half of 2025. Furthermore, it is mainly affected by ongoing geopolitical tension, changing trade policies, and expected slow economic recovery in several key markets, which together affect customer sentiment and order volume.