MOBI Development Co., Ltd. Issues Profit Warning for FY2025

Key Financial Highlights and Strategic Business Updates

MOBI Development Co., Ltd. (Stock Code: 947) has issued a profit warning for the year ended 31 December 2025, which is likely to have significant implications for shareholders and potential investors.

Key Points from the Announcement

• Expected Net Loss Narrows: The unaudited consolidated net loss for FY2025 is forecast to range between RMB90 million and RMB100 million. This represents an improvement compared to the net loss of approximately RMB120.53 million recorded for the same period in 2024.
• Preliminary Data: These figures are based on preliminary assessments of unaudited management accounts and have not been audited or reviewed by the Company’s auditors.
• Reasons for Continued Losses:
  • Decreased Sales Revenue: There was a slowdown in domestic telecommunications operators’ demand for network construction, as well as ongoing global geopolitical challenges. These factors led to order deliveries falling below expectations and ultimately resulted in reduced sales.
  • Rising Raw Material Costs: The continued increase in prices of bulk metals such as copper, aluminum, and silver put downward pressure on gross profit margins.
  • Foreign Exchange Losses: The Company’s USD-denominated assets were significantly affected by fluctuations in the USD exchange rate, leading to exchange losses and further impacting profitability.

Strategic and Operational Updates

• Confidence in Future Growth: Despite the challenging environment, the Board remains confident in the Group’s long-term prospects, citing a sound financial position and sufficient working capital.
• Diversification and Innovation:
  • The Group is accelerating its strategic transformation to diversify its product portfolio and expand global customer channels.
  • Recent breakthroughs include the development and successful initial launch of new products such as WiFi-based dielectric filters, ceramic antennas, and positioning modules, which have already been submitted for customer certification.
  • The Company is also collaborating with equipment manufacturers in the satellite communications sector, with expectations that these new business lines will contribute to large-scale sales and business growth in 2026.
• Market Trends and Outlook:
  • The Group is investing heavily in R&D to drive innovation in core areas and to capitalize on future technologies, such as 5G-A and the prospective deployment of 6G.
  • With state support for telecom industry upgrades, management expects market demand to gradually recover.
  • The Company is committed to deepening cooperation with both domestic and global operators and equipment manufacturers, broadening the customer base, and pursuing new business opportunities.
• Continuous Review: The Board will continue to monitor and adjust the Group’s operations and strategies to address evolving challenges and opportunities.
• Upcoming Results Announcement: The audited annual results for FY2025 are expected to be released in late March 2026.

Implications for Shareholders and Investors

• The narrowing of net losses and ongoing strategic transformation may be viewed positively in the medium to long term, but ongoing losses and the influence of external headwinds remain price-sensitive issues that could impact share value in the near term.
• The introduction of new products and diversification strategies, if successful, could drive a turnaround and provide upside potential, especially with anticipated growth from new business lines in 2026.
• Shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s shares until further audited results and more concrete progress on new initiatives are disclosed.

Board and Management Update

The Board comprises Mr. HU Xiang (Chairman), Ms. ZHOU Lingbo, Mr. YE Rong (Executive Directors), Mr. QU Deqian (Non-Executive Director), and Mr. LI Tianshu, Mr. ZHANG Han, and Ms. GE Xiaojing (Independent Non-Executive Directors).

Announcement Date: 6 March 2026

Disclaimer: The information in this article is based on the Company’s preliminary assessment of unaudited management accounts and forward-looking statements. Actual results may differ. Investors should refer to the official audited results announcement and consult professional advisers before making investment decisions.

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