Xinghe Holdings (01891) issued a profit warning. It is expected that the comprehensive profit attributable to shareholders in the first half of the year will be reduced by about 60% to 90%

According to the Zhitong Finance App, Xinghe Holdings (01891) announced that compared with the six months ended June 30, 2025 (first half of 2025), the Group's comprehensive profit attributable to the Company's owners in the first half of 2026 is expected to be reduced by about 60% to 90%.

The decrease is mainly due to a sharp increase in transportation costs in the first half of 2026, which led to an increase in distribution and sales expenses. The increase in transportation costs is mainly due to the current transportation and logistics cost environment in Malaysia, including changes in fuel subsidies and quota arrangements due to the war in Iran.

Although the Group achieved a slight increase in gross profit in the first half of 2026, the increase was insufficient to offset the significant increase in transportation costs and other operating expenses. As a result, the Group's operating profit and profit before income tax decreased in the first half of 2026 compared with the first half of 2025.