Inter-Pacific Textile Holdings Limited (“Inter-Tai Textile”) issued a profit warning, predicting that the profit attributable to equity holders for the fiscal year ended 31 March 2024 will fall by approximately 60.6% compared to the previous fiscal year, from HK$268.6 million to HK$105.9 million. The decrease was mainly due to higher net interest expense, initial operating loss at the new plant in Vietnam, and a reduction in investment in the joint venture Teejay Lanka PLC. The Company emphasizes that the impairment loss is non-cash in nature and does not affect cash flow and day-to-day operations. Inter-Tai Textile said that the utilization rate of its Panyu plant has improved since March 2024, and revenue and shareholder profits are expected to...Show More

Inter-Pacific Textile Holdings Limited (“Inter-Tai Textile”) issued a profit warning, predicting that the profit attributable to equity holders for the fiscal year ended 31 March 2024 will fall by approximately 60.6% compared to the previous fiscal year, from HK$268.6 million to HK$105.9 million. The decrease was mainly due to higher net interest expense, initial operating loss at the new plant in Vietnam, and a reduction in investment in the joint venture Teejay Lanka PLC. The Company emphasizes that the impairment loss is non-cash in nature and does not affect cash flow and day-to-day operations. Inter-Tai Textile said that the utilization rate of its Panyu plant has improved since March 2024, and revenue and shareholder profits are expected to increase due to increased production capacity as new plants in Vietnam are fully phased out. The company expressed confidence in Teejay's future prospects and expected Teejay's business to improve as the Sri Lankan economy recovers. Inter-Pacific Textiles is also expected to replace high-cost loans with low-cost loans in 2024/25, resulting in lower average interest rates and net interest expenses. The company does not plan to change its dividend policy and remains optimistic about the outlook. Shareholders and potential investors should exercise caution and the company will announce its 2023/24 results in June 2024.