Goodbaby International Holdings Issues Profit Warning for FY2025

Key Points of the Announcement

• Significant Decline in Net Profit Expected: Goodbaby International Holdings Limited has announced that, based on preliminary unaudited management accounts, the Group expects a 35% to 45% decrease in net profit for the year ended 31 December 2025 compared to the net profit of approximately HKD356.2 million recorded in 2024.
• Main Factors Impacting Performance:
  • Decrease in Gross Profit: The decline is primarily attributed to a slight decrease in the Group’s revenue, though the gross margin showed signs of recovery in the second half of 2025.
  • Increase in Income Tax: There is a notable rise in income tax expenses, mainly due to more profits being generated in regions with higher tax rates and withholding tax incurred on dividends distributed between Group entities.
  • Improvement in Net Financial Cost: This was partially offset by reduced net financial costs, thanks to lower loan principals and decreased interest rates.
• Results Not Yet Finalised: The Company’s annual results for 2025 are still being finalized. The figures provided are based on management’s preliminary assessment and unaudited management accounts, which have not been reviewed or audited by the Company’s auditors or audit committee.

Important Information for Shareholders and Potential Investors

• Potential Impact on Share Price: The expected significant drop in net profit, combined with increased tax expenses and only partial offset from improved financial costs, is likely to be viewed negatively by the market. This announcement is considered price sensitive and may affect the share value of Goodbaby International Holdings.
• Caution Advised: Shareholders and potential investors are strongly advised to exercise caution when dealing in the securities of the Company, given that the actual results for FY2025 may differ from the estimates provided.
• Further Details Pending: Investors should await the official audited results and pay close attention to future announcements for more precise figures and further insights into the Company’s operations and outlook.

Board Statement and Management Details

The announcement was issued by the Board, chaired by Mr. SONG Zhenghuan. The Board consists of three Executive Directors (Mr. SONG Zhenghuan, Mr. LIU Tongyou, and Mr. Martin POS), two Non-Executive Directors (Ms. FU Jingqiu and Mr. HO Kwok Yin, Eric), and three Independent Non-Executive Directors (Ms. CHIANG Yun, Mr. WONG Shun Tak, and Mr. JIN Peng).

The announcement was made on 16 February 2026, emphasizing the importance of this update in the context of the Company’s ongoing financial reporting.

What Investors Should Watch Next

• Monitor upcoming official audited annual results for FY2025 for confirmation of the actual figures.
• Watch for management commentary on how the Company plans to address the challenges of decreased revenue and increased tax expenses.
• Look for updates on whether the gross margin recovery in the second half of 2025 will be sustained in 2026.
• Consider the region-specific tax implications and any changes in the Group’s dividend distribution policies.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The information provided is based on unaudited preliminary data and may be subject to change. Investors are advised to review the Company’s official audited results and consult with their financial advisors before making any investment decisions. The author and publisher of this article take no responsibility for any losses incurred as a result of reliance on this information.

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