GP LOGISTICS issues a profit warning, expecting a mid-term net loss of approximately HKD 30 million to 40 million

According to the Zhitong Finance APP, GP LOGISTICS (08489) announced that the group expects to achieve revenue of approximately HKD 325 million to HKD 335 million for the six months ending June 30, 2025, compared to revenue of approximately HKD 426.6 million in the first half of 2024; a gross loss of approximately HKD 10 million to HKD 15 million for the first half of 2025, compared to a gross profit of approximately HKD 10.5 million in the first half of 2024; and a net loss of approximately HKD 30 million to HKD 40 million for the first half of 2025, compared to a net loss of approximately HKD 11.1 million in the first half of 2024.

The significant decrease in expected revenue, the shift from gross profit to gross loss, and the substantial increase in net loss are mainly due to: the impact of newly implemented U.S. tariffs, which has led to a significant decline in demand for the group's cargo transshipment services; and intense industry competition, which has put immense pressure on pricing and compressed the acceptable price increase levels for customers. Additionally, the fixed price terms of the group's existing airline contracts have exacerbated the situation, forcing the group to sell at a loss to avoid penalties and maintain its business. As these airline contracts approach expiration and are not renewed, the group will regain flexibility to adopt more adaptive pricing strategies in this competitive and challenging market, leading to expected improvements in the second half of 2025