Trio Ind Elec (01710) issued a profit warning. The company expects to record a loss of approximately HKD 25 million to HKD 35 million for the six months ended June 30, 2024, attributable to equity holders of the company, while in the same period of the previous year, it recorded a profit of approximately HKD 21.7 million attributable to equity holders of the company.
The main reasons expected for the loss are: (i) the slow overall economic growth in Europe and North America, which resulted in continuous low demand for the group's main products in the European and North American markets; and (ii) increased administrative expenses due to (a) one-time compensation payments for the termination of the previous directors' duties; and (b) increased employee costs in developing new business projects in the new energy fund related markets.