Lianhua Supermarket Issues Profit Warning: Net Loss Expected to Narrow Significantly in 2025
Lianhua Supermarket Issues Profit Warning: Net Loss Expected to Narrow Significantly in 2025
Key Highlights
- Expected Significant Reduction in Net Loss for 2025: Lianhua Supermarket Holdings Co., Ltd. has announced that it expects its net loss attributable to owners of the Company for the year ending 31 December 2025 to decrease significantly by 35% to 55% compared to the audited net loss of approximately RMB 359 million reported for the year ended 31 December 2024.
- Strategic Initiatives Driving the Improvement: The expected narrowing of the net loss is mainly due to adjustments in the Group’s overall strategic planning, the gain from the disposal of equity interests in certain subsidiaries, and enhanced resource allocation that is expected to further reduce losses.
- Preliminary Data: This forecast is based on the management’s preliminary assessment of the Group’s accounts and information currently available. The results have not yet been audited or reviewed by external auditors, and final figures may differ when the audited results are released.
- Results Announcement Timeline: The Company intends to publish its annual results for the year ended 31 December 2025 in March 2026.
Details for Shareholders and Investors
The Board of Directors has informed shareholders and potential investors that, despite continued expectations of a net loss for 2025, the loss is projected to decrease materially. This anticipated improvement stems from the Company’s efforts to refine its strategic direction, sell certain subsidiary equity interests (which generated gains), and optimize the allocation of resources to minimize operational losses.
The Company emphasizes that these projections are not final and are subject to change upon completion of the year-end audit. The actual results, to be released in March 2026, may vary from the estimates provided in this announcement.
Potential Price-Sensitive Information
- Material Decrease in Losses: A reduction of 35% to 55% in net loss compared to the previous year is significant and could positively influence investor sentiment and the Company’s share price, as it suggests progress in the Company’s turnaround efforts.
- Strategic Transactions: Gains from the disposal of equity interests in certain subsidiaries could represent a change in business structure or focus, which may impact the Company’s long-term profitability and operational risk profile.
- Caution Advised: The Company repeatedly advises shareholders and investors to exercise caution when dealing in the shares, as the information provided is based on unaudited, preliminary figures, and the final audited results may differ.
Additional Information
The announcement is made in accordance with the requirements of the Hong Kong Stock Exchange Listing Rules and the Securities and Futures Ordinance regarding the timely disclosure of inside information.
The Board of Directors, as of 4 March 2026, comprises Executive Directors Wang Xiao-yan and Zhang Hui-qin; Non-executive Directors Pu Shao-hua, Shen Chen, Cao Hai-lun, and Yang Qin; and Independent Non-executive Directors Xia Da-wei, Lee Kwok Ming, Don, Chen Wei, and Zhao Xin-sheng.
Conclusion
This profit warning is a noteworthy development for Lianhua Supermarket Holdings Co., Ltd. The anticipated reduction in net loss signals a potentially positive shift in company performance, driven by strategic restructuring and asset disposals. Investors should closely monitor the upcoming audited annual results in March 2026 for confirmation of these trends, while exercising caution due to the preliminary nature of the current figures.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on unaudited, preliminary assessments and may differ from the final audited results. Investors are advised to conduct their own research and consult professional advisors before making investment decisions.
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