Crocodile Garments Issues Profit Warning: Significant Losses Expected for FY2025

Hong Kong, 9 March 2026 – Crocodile Garments Limited (Stock Code: 122) has issued a profit warning announcing that the Group is expecting a substantial increase in its losses for the year ended 31 December 2025. The Board of Directors has provided a preliminary update for shareholders and investors, as the company finalises its annual results.

Key Points from the Announcement

• Expected Loss Increase: The Group is anticipated to record a consolidated loss attributable to owners of not more than HK\$110 million for the year ended 31 December 2025. This is a significant deterioration compared to the loss of HK\$50 million reported for the previous 17-month period ended 31 December 2024.
• Primary Cause: The main driver behind this increased loss is the rise in fair value losses stemming from the revaluation of the Group’s investment properties. Importantly, these losses are non-cash in nature, meaning they do not directly impact the company’s cash flow.
• Results Not Finalised: The numbers provided are based on a preliminary assessment of the latest consolidated management accounts. They have not yet been audited or reviewed by the Company’s auditors, nor have they been reviewed by the audit committee.
• Results Announcement Timeline: The final audited results are expected to be published in late March 2026.

What Shareholders Should Know

• Potential Share Price Impact: The anticipated increase in losses, especially at this magnitude, is likely to be price sensitive and may negatively affect the share value of Crocodile Garments Limited. Shareholders and potential investors should be aware of the possibility of share price volatility in response to this news.
• Nature of Losses: It is important to note that the increased losses are mainly due to non-cash fair value adjustments on investment properties, rather than operational cash outflows. This distinction could be relevant for long-term investors assessing the company’s underlying performance versus accounting adjustments.
• Caution Advised: The company has explicitly advised shareholders and potential investors to exercise caution when dealing in the shares of the Company until the final results are released and greater clarity is provided.

Board Composition

As of the date of the announcement, the Board of Crocodile Garments Limited comprises:

• Executive Directors: Ms. Lam Wai Shan, Vanessa (Chairman and Chief Executive Officer), with Mr. Lee Po On as her Alternate Director, and Mr. Lam Kin Hong, Matthew.
• Non-executive Directors: Mr. Chow Bing Chiu, Ms. Lam Suk Ying, Diana, and Mr. Lam Howard.
• Independent Non-executive Directors: Mr. Leung Shu Yin, William (Deputy Chairman), Mr. Fung Cheuk Nang, Clement, and Mr. Woo King Hang.

Conclusion

The profit warning from Crocodile Garments Limited signals a challenging year for the company, with a dramatic increase in expected losses for FY2025. While the main cause is non-cash in nature, the scale of the loss is likely to draw investor concern and could lead to share price movement, particularly as the market digests the impact of property revaluations on the Group’s financial position. Investors are strongly encouraged to monitor further announcements and exercise due caution in trading the company’s shares.

Disclaimer: This article is based on preliminary unaudited information disclosed by Crocodile Garments Limited. The final results have not yet been audited nor reviewed by the audit committee. Investors should consider all risks and consult their own advisors before making any investment decisions. This article does not constitute investment advice.

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