China-HK Photo (01123.HK) expects that the net profit for the six months ending on September 30, 2024 will not exceed 7.5 million yuan, while the net profit for the same period last year was about 28.7 million yuan.

The board of directors believes that the decrease in profit compared to the same period last year is mainly attributed to the downturn in consumer sentiment leading to a decrease in revenue and gross profit; inability to obtain tax exemptions during the period; impairment losses on financial assets due to uncertainty in the recovery of a trade receivable from a customer; and increased provision for impairment losses on property, plant, and equipment, as well as right-of-use assets.