JuTeng International (03336) is expecting losses attributable to equity holders to soar to HK$750 million to HK$850 million in the first half of the year

According to the Zhitong Finance App, JuTeng International (03336) announced that the group expects to obtain a loss of about HK$750 million to HK$850 million from the company's equity holders in the first half of 2026, compared to a loss of about HK$79 million for the same period in 2025.

According to the announcement, despite the measures taken by the Group to reduce operating costs and adjust operating and production strategies, the Group is expected to obtain a significant increase in losses due to the following factors: (1) Sales revenue fell by about 5% compared to the same period in 2025, mainly due to weakening demand from customers of major notebook computer brands due to the global shortage of memory memory drives up costs and sales prices, thereby weakening end user consumption, leading to a decrease in orders for the Group, which is in line with the decline in global PC shipments in the second quarter of 2026; (2) Nothing is as good as the situation where global PC shipments declined in the second quarter of 2026; (2) Nothing like For the same period in 2025, a one-time income of about HK$139 million was confirmed from the sale of non-current assets classified as holding sales due to the Group's sale of certain assets; (3) The net foreign exchange loss generated during the period was approximately HK$211 million, compared to about HK$24 million for the same period in 2025, mainly driven by RMB appreciation. (4) Trial production costs for new products during this period were reclassified from sales costs to sales and distribution expenses to more effectively reflect the production costs of sold products, leading to an increase in sales and distribution expenses of about HK$147 million during the same period, compared to about HK$73 million in the same period in 2025; and (5) production costs of around HK$450 million to about HK$550 million were classified as idle capacity costs, thereby reducing the amount of inventory costs set aside in accordance with the accounting standards and policies adopted by the Group and increasing other confirmed expenses during the period.