Kingdom Holdings Limited Issues Positive Profit Alert for FY2025

Key Highlights

• Strong Turnaround Expected for FY2025: Kingdom Holdings Limited anticipates a net profit of not less than RMB60 million and net profit attributable to owners of the parent of not less than RMB61 million for the year ended 31 December 2025.
• Significant Recovery from Previous Year’s Loss: This represents a major recovery compared to a net loss of RMB43.34 million and a net loss attributable to owners of the parent of RMB45.38 million in FY2024.
• Key Drivers of Improved Performance:
  • Gradual recovery of linen yarn prices in the second half of 2025 following market adjustments in raw material and linen yarn prices from late 2024 to Q2 2025.
  • Rapid growth in the domestic linen consumption market, which boosted demand and overall profitability.
• Price Sensitive Inside Information: The sharp turnaround in profitability is likely to be viewed positively by the market and could significantly affect the Company’s share price.

Details for Shareholders and Investors

The Board of Directors of Kingdom Holdings Limited announced a significant improvement in the Group’s financial performance for the year ended 31 December 2025. The Company’s preliminary, unaudited consolidated management accounts indicate a net profit of at least RMB60 million, with net profit attributable to owners of the parent expected to be no less than RMB61 million.

This anticipated result marks a dramatic reversal from the previous year, when Kingdom Holdings reported a net loss of RMB43.34 million (net loss attributable to owners of the parent: RMB45.38 million). The turnaround is mainly attributed to two key factors:

1. Recovery in Linen Yarn Prices: After significant market adjustments in both raw material and linen yarn prices from the end of 2024 through the second quarter of 2025, prices gradually recovered in the second half of 2025, which contributed to improved margins and profitability.
2. Strong Domestic Market Demand: The domestic linen consumption market saw rapid growth, which elevated product demand and reinforced Kingdom Holdings’ overall profitability.

Important Note for Shareholders

• Preliminary Figures: The profit alert is based on the Company’s unaudited consolidated management accounts. The numbers have not yet been reviewed or confirmed by the Company’s auditors or audit committee. Actual results may vary.
• Expected Release of Final Results: Detailed and audited financial results for FY2025 will be disclosed in the Company’s annual results announcement, expected to be published before the end of March 2026.
• Caution Advised: Shareholders and potential investors are advised to exercise caution when dealing in the Company’s shares, as these preliminary results could lead to increased volatility in the share price.

Board and Management Update

As of the date of this announcement, the Board of Directors comprises Executive Directors Mr. Ren Weiming (Chairman), Mr. Shen Yueming, Mr. Zhang Hongwen, Mr. Ren Zhong, and Mr. Tang Tianheng; Non-Executive Director Mr. Ngan Martin; and Independent Non-Executive Directors Mr. Lau Ying Kit, Ms. Zhang Chan, and Mr. Fan Lei.

Disclaimer: The information above is based on the Company’s preliminary, unaudited financial data. Investors should exercise caution and await the official, audited annual results before making investment decisions. This article does not constitute investment advice.

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