Liantai Holdings (00311) is expected to have a net profit of about 6 million US dollars to 7 million US dollars in the medium term

According to the Zhitong Finance App, Liantai Holdings (00311) issued an announcement. It is expected that the Company will record net profit attributable to the Company's owners for the six months ending June 30, 2026 (relevant period), while the net profit attributable to the Company's owners for the same period in 2025 is approximately US$400,000.

The Board believes that the expected improvement in the Group's financial performance is mainly due to the following factors: revenue growth of about 10% compared to the same period in 2025, mainly driven by continued growth in demand in the sportswear business; improved gross margin due to a more beneficial product portfolio, the Group's continuous optimization of production layout, improved production efficiency and continued implementation of cost control measures; and the reduction of financial expenses from approximately US$4.8 million in the same period of 2025 to approximately US$3.2 million in the relevant period, due to the Group's continued commitment to optimize its financing structure and reduce borrowing costs.

Notwithstanding the above situation, the Group remains cautious about the business outlook for the second half of 2026 in view of ongoing geopolitical uncertainties that may affect customer demand, procurement decisions and the global supply chain (including the ongoing Russian-Ukrainian conflict, the potential turmoil in the Middle East situation caused by the US-Iran relationship), as well as uncertainties brought about by the US equal tariff policy. Looking ahead, the Group will continue to pay close attention to market conditions and make timely adjustments to its business strategy in due course.