MBV International Limited Issues Substantial Profit Warning for FY2025

Key Highlights

• Drastic decline in profit after tax expected for FY2025: MBV International Limited anticipates a significant decrease in its profit after tax, projecting a maximum of RM1.0 million for the year ended 31 December 2025, compared to RM24.2 million recorded in FY2024.
• Major driver: Impairment loss on investments in associates: The sharp reduction in profits is primarily attributed to an impairment assessment, which resulted in the recognition of an impairment loss of approximately RM18.7 million.
• Preliminary, unaudited figures: The figures disclosed are based on preliminary unaudited consolidated management accounts and may be subject to change as the results have not yet been reviewed by the audit committee.
• Final results pending: The audited financial results are expected to be published by the end of March 2026.

Details for Shareholders and Investors

MBV International Limited has issued a profit warning, alerting shareholders and potential investors to a drastic reduction in expected profits for the fiscal year ended 31 December 2025. The company forecasts a profit after tax of not more than RM1.0 million, which marks a steep decline from the RM24.2 million reported in the previous financial year.

The primary reason behind this substantial fall in profitability is the impairment assessment conducted on the Group’s investments in associates. Following this assessment, the company recognized an impairment loss of approximately RM18.7 million. This impairment loss is a non-cash accounting entry but significantly impacts the reported profit and could be perceived as an indicator of underperformance or reassessment of the value of the company’s investments.

The announcement stresses that these figures are preliminary and unaudited, derived from the latest available management accounts. The company cautions that the final audited figures are still being finalized and will be subject to review by the audit committee. As such, there may be further adjustments before the official publication of the annual results.

Price-Sensitive Information and Potential Share Price Impact

This announcement contains material, price-sensitive information that investors must consider. The recognition of a substantial impairment loss and the resulting sharp drop in profitability may affect investor sentiment and could have a significant impact on the company’s share price once trading resumes or when the market digests the news.

Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of MBV International Limited until the audited financial results are officially released. The company expects to publish its financial results for the year ended 31 December 2025 by the end of March 2026.

Board Statement

The Board of MBV International Limited has reiterated that the information disclosed is based on the Board’s preliminary assessment and the latest unaudited financial information. The Board also notes that the profit warning is issued in compliance with the relevant Hong Kong Stock Exchange Listing Rules and the Securities and Futures Ordinance.

Company Leadership

• Chairman and Executive Director: Dato’ Tan Meng Seng
• Other Executive Directors: Mr. Tan Beng Sen, Dato’ Tan Mein Kwang, Datin Kong Siew Peng, Ms. Hou Yanli
• Independent Non-Executive Directors: Ms. Chui Sin Heng, Mr. Au Wing Yuen, Mr. Yu Cheeric

The announcement was issued in Hong Kong on 3 March 2026.

Disclaimer

This article is prepared based on the latest preliminary and unaudited financial information released by MBV International Limited. Investors are advised to await the publication of the audited results and exercise caution when dealing with the company’s shares. The information contained herein does not constitute investment advice. Please consult your professional financial adviser before making any investment decisions.

View MBV INTL Historical chart here