Linian International (09918) is forecasting a net loss of approximately HK$55 million year-on-year profit to loss for the medium term

According to Zhitong Finance App News, Li Nian International (09918) announced that the Group expects to record a net loss of approximately HK$55 million due to equity holders of the Company in the six months ending June 30, 2026, and a net profit of about HK$14.3 million for the same period in 2025, including a one-time income of about HK$23.2 million from changes in the fair value of financial assets that include profit and loss at a fair value.

The Group is expected to record a net loss, mainly due to reduced revenue and rising sales costs, which together led to a decline in gross profit and gross margin. Continued geopolitical tension and macroeconomic uncertainties continue to weaken consumer confidence in the Group's main terminal markets, leading to a marked weakening in customer demand. This situation reduced order inflows, and revenue also declined by about 34% compared to the same period in 2025. At the same time, the cost of raw materials and electronic components has risen sharply due to geopolitical tension, fluctuations in oil prices, and strong global demand driven by the rapid expansion of the artificial intelligence and electric vehicle industries. Competition for key materials intensified, leading to tight supply and sharp increases in supplier prices, directly driving up the Group's production costs and putting pressure on the Group's gross margin.