Pacific Textiles warns of profit drop amid US tariff impact

Pacific Textiles Holdings Limited has issued a profit warning, projecting a substantial decrease in profit attributable to equity holders for the six months ending September 30, 2025. The company expects to report a profit between approximately HK$72m to HK$82m, a significant drop from the HK$106.9m recorded in the corresponding period of 2024. This downturn is largely attributed to a decrease in sales orders and higher fixed cost absorption from lower production facility utilization.

The decline was particularly driven by a drastic fall in sales orders between April and June 2025, following the U.S. announcement of a 46% import tariff on goods from Vietnam. This led to U.S. customers withholding or cancelling orders placed with the group's Vietnamese factories. However, the impact of these tariffs began to fade from July 2025 as the rate was subsequently fixed at a lower 20%, resulting in a recovery of sales order levels to March 2025 figures and utilization rates of two Vietnam factories bouncing back to 80% to 90%.

The financial information in this announcement is based on a preliminary review of unaudited management accounts. Shareholders and potential investors are advised to exercise caution, as the final 2025/26 interim results, expected on November 28, 2025, may differ from this preliminary disclosure.