Greentech Technology International Limited Issues Major Profit Alert: Sharp Increase Expected for HY2025 and FY2024

Key Highlights

• Significant Profit Growth Expected: The Group anticipates profit attributable to owners for the six months ended 30 June 2025 (HY2025) to be not less than HK\$60.0 million, a substantial increase from HK\$15.8 million reported for the same period in 2024 (HY2024).
• Full Year Profit Also Set to Double: For the year ended 31 December 2024 (FY2024), profit attributable to owners is expected to increase by not less than 100% compared to HK\$68.4 million for the year ended 31 December 2023.
• Primary Drivers: The surge in profit is mainly due to a significant increase in tin prices and sales volumes, resulting in a sharp rise in gross profit for the period. However, this was partially offset by an increase in exchange losses.
• Ongoing Suspension of Trading: Trading of Greentech Technology International Limited’s shares remains suspended since 2 September 2024, pending the publication of the unaudited interim results for the six months ended 30 June 2024. Trading will only resume once the company meets the Resumption Guidance set by the Hong Kong Stock Exchange.

Detailed Analysis

Greentech Technology International Limited (Stock Code: 00195) has issued a Positive Profit Alert to its shareholders and potential investors. According to the company’s preliminary assessment of unaudited consolidated management accounts for HY2025, the Group expects to report a profit attributable to owners of not less than HK\$60.0 million. This is nearly a four-fold increase from the HK\$15.8 million profit recorded in HY2024.

The main factors contributing to this significant profit growth are:

• Increase in Tin Prices: The global tin market has seen a notable uptrend, which has directly benefited Greentech’s profitability.
• Higher Sales Volumes: Improved sales performance has further driven up gross profit for the reporting period.

However, investors should note that the positive impact from higher tin prices and sales was partially offset by increased exchange losses, which somewhat dampened the overall profit growth.

For the full year ended 31 December 2024 (FY2024), the company also expects profit attributable to owners to increase by at least 100% compared to the HK\$68.4 million recorded in 2023. This underscores the improved operational performance and market conditions that the Group is experiencing.

Important Shareholder Information

• Suspension of Trading: The company’s shares have been suspended from trading since 2 September 2024 due to a delay in publishing the unaudited interim results for the six months ended 30 June 2024. Trading will remain suspended until the company meets the Resumption Guidance set by the Stock Exchange, as referenced in its 21 November 2024 announcement.
• Publication Timeline: The audited financial statements for FY2024 and the consolidated interim results for HY2025 are expected to be published by 27 February 2026.
• Results Not Audited Yet: The profit figures mentioned are based on the Board’s preliminary assessment of the unaudited management accounts. These numbers have not yet been audited or reviewed by the company’s independent auditors and may be subject to changes.
• Board Composition: As of the announcement date, the Board comprises five executive directors and three independent non-executive directors, indicating a robust corporate governance structure.

Potential Impact on Share Price

The significant increase in profit forecasts for both HY2025 and FY2024 is a majorly price-sensitive development that could have a substantial impact on the company’s share price once trading resumes. The market is likely to respond positively to the news of improved profitability, especially given the scale of the anticipated increase and the underlying operational improvements.

However, investors should remain cautious due to the ongoing suspension of trading and the need for the company to resolve its reporting delays and fulfill the Stock Exchange’s Resumption Guidance.

Conclusion

Greentech Technology International Limited’s Positive Profit Alert signals strong financial performance for the periods under review, driven by favorable market conditions in the tin industry and higher sales volumes. Nevertheless, the suspension of trading and the pending audit review are key factors for shareholders and potential investors to monitor closely.

Disclaimer

The information in this article is based on the company’s preliminary unaudited management accounts and may be subject to change. Investors are advised to exercise caution when dealing in the securities of the company. This article does not constitute investment advice.

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