Starlight Group (00403) issued a profit warning. It is expected that losses attributable to shareholders in the medium term will not exceed HK$55 million year-on-year increase

According to the Zhitong Finance App, Starlight Group (00403) issued an announcement. It is expected that the Group will obtain no more than HK$55 million in losses attributable to the Company's owners in the six months ending September 30, 2026, while in the same period last year, it will obtain a loss attributable to the Company's owners of about HK$29 million.

The Board believes that these losses are mainly due to:

In the face of the global economic downturn, affecting consumer sentiment and weakening the consumer market, the Group's brand customers adopted a more conservative and prudent bargaining attitude on sales prices proposed to the Group during this period. Despite the increase in sales during the period, intense competition in the packaging and paper products business caused profits to decline;

The outbreak of conflict in the Middle East led to a continuous rise in crude oil prices, leading to a decline in the Group's gross margin and an increase in sales and distribution expenses due to rising raw material prices and transportation costs;

The Southeast Asia division lost some high-quality customers and low production efficiency, leading to increased losses;

The impact of the appreciation of the RMB (RMB) against the Hong Kong dollar was that the average monthly exchange rate of RMB against the Hong Kong dollar rose by about 7% compared to September 2025. The RMB appreciated during this period, which adversely affected the operating costs of the Group's factories in mainland China.