Yongmao Holdings says it expects to see “significantly lower” net profits for the 1HFY2025 ended Sept 30 compared to the corresponding period the year before.
The guidance is based on the preliminary assessment of the group’s unaudited financial statements for the period.
According to Yongmao BKX , the lower y-o-y net profits is due to the higher selling and distribution expenses during the six-month period as freight charges rose on the back of higher freight rates.
In addition, Yongmao incurred higher exchange losses in the 1HFY2025 compared to a gain in the 1HFY2024. The group also saw higher finance costs due to higher average borrowings in the 1HFY2025.
That said, the group says it expects to record a “significant fair value gain” on its financial assets at the fair value through other comprehensive income (FVOCI) line. This will lead to a higher total comprehensive gain attributable to shareholders in 1HFY2025.
Shares in Yongmao closed flat at 58 cents on Oct 30.
