According to Yongmao , the lower y-o-y net profits is due to the higher selling and distribution expenses during the six-month period as freight charges rose on the back of higher freight rates.
In addition, Yongmao incurred higher exchange losses in the 1HFY2025 compared to a gain in the 1HFY2024. The group also saw higher finance costs due to higher average borrowings in the 1HFY2025.
That said, the group says it expects to record a “significant fair value gain” on its financial assets at the fair value through other comprehensive income (FVOCI) line. This will lead to a higher total comprehensive gain attributable to shareholders in 1HFY2025.
Shares in Yongmao closed flat at 58 cents on Oct 30.
