STRONG PETRO (HKEX: 00852) has issued a profit alert, forecasting a significant increase in its attributable net loss for the first half of the 2025 fiscal year.

The company anticipates recording a loss attributable to shareholders in the range of approximately HK$62 million to HK$66 million for the six months ending June 30, 2025.

This projected loss stands in stark contrast to the unaudited loss of about HK$8.8 million reported for the corresponding period in 2024.

The company attributes the expected substantial loss primarily to adverse market conditions, which led to a gross loss in its petrochemical manufacturing business and a consequent decline in gross profit.

Furthermore, administrative expenses have risen significantly due to substantially higher legal and professional fees incurred by the previous management, as well as costs related to the resumption of trading of the company's shares on the Stock Exchange of Hong Kong paid by the current management.

The negative impact of these factors was partially offset by an increase in net foreign exchange gains during the period.