HUA LIEN INT'L (00969) announced that it expects to record a net loss of approximately HK$5 million to HK$15 million for the six months ending June 30, 2026 (the reporting period), compared to a net loss of about HK$13.1 million for the six months ending June 30, 2025.

Overall, the group's net loss for the reporting period is projected to remain at a similar level to the same period last year. Although the net loss is not expected to differ significantly year-on-year, the company's operating performance has notably weakened compared to the prior period.

The board believes this decline is primarily due to persistent adverse and unpredictable weather conditions in Jamaica during the reporting period, compounded by pressures from natural disasters and climate change. This has led to a drop in sugarcane harvest yields, resulting in reduced sugarcane harvesting and crushing volumes. Consequently, the group's sugar business segment expects revenue for the reporting period to decrease by approximately 64% year-on-year to about HK$26.5 million.

At the same time, the reduced production and sales scale have diminished economic synergies, causing a significant increase in the unit production cost of raw sugar products.