GP LOGISTICS (08489) announced that the group expects to achieve revenue of approximately HK$325 million to HK$335 million for the six months ended June 30, 2025, compared to revenue of approximately HK$426.6 million for the first half of 2024. The company anticipates a gross loss of approximately HK$10 million to HK$15 million for the first half of 2025, compared to a gross profit of approximately HK$10.5 million for the first half of 2024. Additionally, the group expects to record a net loss of approximately HK$30 million to HK$40 million for the first half of 2025, compared to a net loss of approximately HK$11.1 million for the first half of 2024.
The expected significant decrease in revenue, shift from gross profit to gross loss, and substantial increase in net loss are primarily attributed to the impact of newly implemented US tariffs, which led to a sharp decline in demand for the group's cargo transshipment services, and intensified industry competition that created enormous pricing pressure and compressed acceptable markup levels from customers. The situation was further exacerbated by the fixed-price terms in the group's existing airline contracts, forcing the group to sell at a loss to avoid penalties and maintain its business operations.
As these airline contracts approach expiration and will not be renewed, the group will regain flexibility to adopt more adaptive pricing strategies in this competitive and challenging market, with improvements expected in the second half of 2025.
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