Starlite Holdings Ltd (ASX: 00403) has issued a profit warning for the fiscal year ending March 31, 2026.

The company anticipates its attributable loss for the period will not exceed HK$107 million.

This represents a significant increase compared to the approximately HK$27 million loss recorded for the previous fiscal year ended March 31, 2025.

Key Factors Behind the Loss

The board attributes the expected larger loss to several contributing factors.

Intense market competition and uncertainties surrounding U.S. government-imposed tariffs on trade have led to a substantial decrease in orders from packaging and U.S.-based clients, causing a sharp decline in the group's revenue.

An impairment loss of approximately HK$29 million was recognized on property, plant, equipment, and right-of-use assets.

While the revenue of the group's green packaging segment increased year-on-year, its losses widened due to higher product development costs for new items and increased promotional expenses across online and offline channels.

The relocation of certain production lines to Malaysia has been completed, but full production capacity has not yet been restored.

Foreign exchange volatility resulted in a shift from exchange gains to exchange losses within other income and expenses.