Key Points from the Announcement

• The Board of Trio Industrial Electronics Group Limited (“Trio” or the “Company”) has issued a profit warning for the financial year ended 31 December 2025.
• The Group expects to record a loss attributable to owners of the Company of not more than HK\$38 million for FY2025, compared to a profit of approximately HK\$8.6 million in FY2024.
• This substantial swing from profit to loss is based on preliminary unaudited management accounts and currently available information; the results have not been reviewed or audited, and may be subject to adjustment.

Factors Leading to the Expected Loss

1. Decline in Revenue:
   • The Group experienced softened demand for its smart vending systems, smart chargers, switch-mode power supplies, and electro-mechanical products in the European market.
   • This was largely attributed to macroeconomic uncertainties, including a relatively high interest rate environment, ongoing geopolitical tensions, and the implementation of revised U.S. tariff policies.
2. Increase in Administrative Expenses:
   • Administrative expenses rose due to the restructuring, expansion, and optimisation of the Group’s Electronics Manufacturing Services (EMS) sales team and overseas operations.
   • This restructuring is a key driver of Trio’s strategic reform to manufacture higher value-added products and develop new customers with higher profit contributions.
3. Increased Operating Costs:
   • The Group incurred higher operating costs associated with developing new business projects in the new energy sector within emerging markets.
   • These costs are part of the Group’s ongoing strategic reform to diversify business and enter new high-growth sectors.

Important Information for Shareholders and Potential Investors

• The expected loss for FY2025 represents a significant reversal from the previous year’s profit, which is highly price sensitive and could affect the Company’s share value.
• The information disclosed is based on preliminary unaudited accounts and may be subject to further adjustment upon finalisation and audit.
• The Company’s annual results announcement for FY2025 is expected to be published on or before 31 March 2026.
• Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of the Company given the expected negative financial results.

Board Composition

• As of the date of the announcement, the Board comprises:
• Executive Directors: Mr. Wong Sze Chai (Chairman), Ms. Liu Yun, and Mr. Leung Tak Ho
• Non-executive Director: Mr. Kwan Tak Sum Stanley
• Independent Non-executive Directors: Mr. Kan Pak Cheong, Mr. Wong Kwok Kuen, and Mr. Bao King To

Conclusion

The expected loss and the reasons detailed in the announcement represent significant developments for Trio Industrial Electronics Group Limited. The Company is undergoing strategic reforms and facing tough macroeconomic conditions, which have led to increased expenses and reduced revenue. Shareholders and investors should closely monitor future disclosures and be aware of potential volatility in the Company’s share price.

Disclaimer: This article is based on preliminary unaudited information disclosed by Trio Industrial Electronics Group Limited. It is intended for informational purposes only and does not constitute investment advice. Investors should read the Company’s official annual results announcement for FY2025 and consult with professional advisers before making any investment decisions.

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