Carry Wealth Holdings Limited Issues Significant Profit Warning for FY2025

Key Points Investors Must Know

• Carry Wealth Holdings Limited expects its net loss for the year ending 31 December 2025 to widen substantially to approximately HK\$46.9 million, up from a loss of about HK\$33.7 million in 2024.
• The anticipated increase in losses is based on preliminary assessments of the Group’s management accounts and has not yet been reviewed by the audit committee.
• The official results announcement for FY2025 is expected to be published by 27 March 2026.

Factors Driving the Losses

• Revenue Decline: The Group expects a substantial revenue drop of about 52.5%. This sharp decline is primarily attributed to a marked reduction in order volumes from principal customers in the United States and Europe. These reductions are largely due to changes in customers’ sourcing strategies amid broader macro-economic headwinds.
• Gross Profit Margin Decrease:
  • Continued inflationary pressure on supply chain and subcontractor costs, despite the Group’s strategic shift of its production base to Southeast Asia.
  • A change in the Group’s product structure, with an increased proportion of woven products and a corresponding decrease in knitted products. Notably, knitted products generally carry a higher profit margin, as the Group’s subcontracted factories are more specialized in them.

Management Commentary and Investor Guidance

• The announcement was made pursuant to Hong Kong Listing Rules and the Inside Information Provisions under the Securities and Futures Ordinance, highlighting its importance and price sensitivity.
• Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Carry Wealth Holdings Limited, given the expected widening of losses.
• The Board comprises Mr. Zhang ZiXing (Executive Director and Chairman), Mr. Lee Chi Ho (Executive Director), and independent non-executive directors Mr. Cheng Wai Hei, Mr. Lam Chi Wing, and Ms. Li Qian.

Implications for Shareholders

The announcement is highly price sensitive, and the significant expected widening of net losses may negatively impact the share price of Carry Wealth Holdings Limited. The combination of a steep revenue decline, deteriorating profit margins, and ongoing macroeconomic challenges in key export markets signals heightened risks for shareholders. This profit warning is a critical update for current and potential investors, who should closely monitor upcoming disclosures and exercise caution in trading the company’s shares.

Next Steps

Investors should await the formal results announcement for FY2025, expected by 27 March 2026, for audited and confirmed figures. In the meantime, any investment decisions should factor in the current adverse outlook and the Company’s warning regarding potential further losses.

Disclaimer: This article is based on preliminary information disclosed by Carry Wealth Holdings Limited. It does not constitute investment advice. Investors should consult official Company announcements and their financial advisors before making any investment decisions. The Company’s results have not yet been audited, and actual outcomes may differ. Exercise caution when trading.

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