GDH Guangnan (Holdings) Limited Issues Profit Warning for FY2025

Key Highlights and Investor Considerations

GDH Guangnan (Holdings) Limited (Stock code: 01203) has issued a profit warning for the financial year ended 31 December 2025. The announcement, made pursuant to the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance and Rule 13.09(2)(a) of the Listing Rules, contains several important disclosures that shareholders and potential investors should be aware of:

Summary of Financial Performance

• The unaudited consolidated profit attributable to owners for FY2025 is expected to be not less than HK\$111 million.
• This represents a decrease of approximately 21% compared to the audited consolidated profit of HK\$141 million in FY2024.

Key Drivers Behind the Profit Decline

1. Reduced Profit Contribution from Pig Farming Associate:
   • The associate engaged in pig farming and trading saw slowed profit growth due to a significant drop in swine prices in the third quarter of 2025.
   • This led to a lower share of profit from the associate compared to 2024.
2. Increased Impairment Losses on Trade Receivables:
   • The challenging domestic economic environment, especially in the food wholesale business, has resulted in higher expected credit loss provisions for trade receivables.
   • This has had a direct negative impact on the group’s profitability.
3. Absence of One-Off Gain Recognised in 2024:
   • In 2024, the company recognised a gain from the liquidation of its associate, Yellow Dragon Food Industry Co., Ltd.
   • No such gain was realised in 2025, contributing to the year-on-year profit decline.

Offsetting Factors

• The decline in profit was partially offset by increased profits from the tinplating business, which benefitted from expanded export sales, improvements in marketing mix, and enhanced cost reduction measures.

Other Critical Information for Shareholders

• The figures released are based on a preliminary internal review of the unaudited consolidated management accounts for FY2025.
• The results have not been audited or reviewed by the company’s auditor or the Audit Committee.
• The final audited results may differ from the figures disclosed in this profit warning.
• The company expects to announce its annual results for the year ended 31 December 2025 by the end of March 2026.
• Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares or securities of the company until the audited results are published.

Board Composition as of Announcement Date

• Acting Chairman and Vice Chairman: Yang Zhe
• Executive Directors: Yang Zhe, Long Wenfang
• Non-executive Directors: Yu Huijuan, Wen Yinheng
• Independent Non-executive Directors: Gerard Joseph McMahon, Li Kar Keung (Caspar), Dr. Wong Yau Kar (David)

Potential Impact on Share Price

The expectation of a significant profit decline, driven by sector-specific and macroeconomic headwinds, along with the absence of one-off gains, is likely to be price-sensitive and may influence the market value of GDH Guangnan (Holdings) Limited shares. Investors should closely monitor further announcements, especially the final audited results to be published by March 2026.

Disclaimer: This article is based on an official company disclosure and is intended for informational purposes only. It does not constitute investment advice. Investors are urged to exercise caution and consult their professional advisers before making any investment decisions in relation to GDH Guangnan (Holdings) Limited.

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