GP LOGISTICS (08489) has announced an expected revenue for the fiscal year ending December 31, 2025, in the range of approximately HK$720 million to HK$730 million. This compares to revenue of about HK$1.058 billion for the fiscal year ended December 31, 2024. The company also anticipates a net loss for the 2025 fiscal year between HK$43 million and HK$46 million, a significant increase from the net loss of approximately HK$4 million reported for the 2024 fiscal year.
The projected decrease in revenue and the larger net loss are primarily attributed to factors similar to those disclosed in the company's 2025 interim report. These include the impact of U.S. tariffs, which has led to a substantial decline in demand for the group's cargo transshipment services. Furthermore, intensifying industry competition has placed immense pressure on pricing and narrowed the scope for acceptable price increases among customers. The situation has been exacerbated by fixed-price terms in the group's existing airline contracts, forcing the company to sell at a loss to avoid penalties and sustain its business operations.
With these airline contracts set to expire in the second half of 2025 and not be renewed, the group's gross loss is projected to decrease from approximately HK$11.7 million for the six months ended June 30, 2025, to about HK$200,000 for the full 2025 fiscal year. This contrasts with a gross profit of around HK$40 million in the 2024 fiscal year. Additionally, as mentioned, the rate of increase in the forecasted net loss for the second half of 2025 has moderated compared to the net loss of approximately HK$35.7 million recorded in the first half of 2025.
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