Arts Optical International Holdings Limited Issues Positive Profit Alert for FY2025

Significant Increase in Net Profit Expected: Key Details for Investors

Arts Optical International Holdings Limited (“the Company”, Stock Code: 1120) has released a positive profit alert regarding its financial performance for the year ended 31 December 2025. The Company expects a substantial increase in consolidated net profit attributable to shareholders, projecting a profit in the range of HK\$15 million to HK\$25 million for the year. This anticipated result compares very favorably to the net profit of approximately HK\$11.4 million recorded for the year ended 31 December 2024.

Key Highlights of the Profit Alert

• Net Profit Surge: The Company projects a year-on-year increase in net profit of between 31% and 119%, a significant improvement that is likely to be price sensitive and could positively impact share value.
• Revenue Growth: The improvement in profitability is attributed firstly to an increase in total revenue for the reporting period, indicating robust business expansion.
• Gross Profit Margin Improvement: Notably, the Company reports an improved gross profit margin, mainly due to strong business growth in the Lens division. The Lens division carries a higher profit margin than the Group’s average, further boosting overall profitability.
• Increased Share of Profit from Associated Company: The Company’s share of profit from an associated company rose to approximately HK\$19.2 million (unaudited) in 2025, up from about HK\$11.8 million in 2024. This increase was driven by higher revenue and enhanced operating efficiency in the associated company.

Important Considerations for Shareholders

• Preliminary Figures: The profit figures provided are based on a preliminary assessment of unaudited consolidated management accounts. They have not yet been reviewed by the Company’s auditor or audit committee.
• Potential for Adjustments: The Company cautions that the final audited results may differ as the unaudited consolidated final results are still being finalized and may be subject to further review and adjustment.
• Release of Final Results: The final results announcement for the reporting period is expected by the end of March 2026.
• Market Sensitivity: Investors and shareholders should note that this announcement is made in accordance with the Listing Rules and Inside Information Provisions. The Company explicitly advises all shareholders and potential investors to exercise caution when dealing in its shares, as the information disclosed could materially affect the share price.

Board Composition

As of the date of this announcement, the Board comprises eight directors: four executive directors (Mr. Ng Hoi Ying, Michael (Chairman), Ms. Ng Yat Shan, Mr. Ng Kim Ying, and Ms. Wu Zhihong) and four independent non-executive directors (Mr. Wong Chi Wai, Mr. Chung Hil Lan Eric, Mr. Lam Yu Lung, and Dr. Fong Kin Kiu).

Conclusion

The announcement of a substantial increase in net profit, driven by revenue growth, improved margins in the Lens division, and higher contributions from associated companies, is a significant and potentially share price-moving development for Arts Optical International Holdings Limited. Investors should monitor the final results announcement and remain vigilant regarding any updates from the Company.

Disclaimer: The information presented above is based on the Company’s preliminary unaudited management accounts and the latest available information as disclosed in their Positive Profit Alert. Investors are advised that these results are subject to finalization and review. The Company has not yet released its audited full-year results for FY2025. This article does not constitute investment advice. All investors should exercise caution and consult their financial advisors before making investment decisions.

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