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Wednesday, March 11th, 2026

Bonny International Issues Profit Warning: Expected Loss of Up to RMB58 Million for 2025 Due to Revenue Decline and Property Impairment 12

Key Highlights from the Announcement

  • Significant Increase in Losses: Bonny International Holding Limited has issued a profit warning, indicating that, based on preliminary unaudited consolidated management accounts, the Group expects a loss attributable to owners of the Company ranging from RMB52.0 million to RMB58.0 million for the year ended 31 December 2025. This represents a substantial increase compared to the loss of approximately RMB16.7 million recorded for the year ended 31 December 2024.
  • Decline in Revenue: The Group recorded a revenue decrease of over 10% for FY2025 compared to revenues of approximately RMB266.7 million in FY2024. This decline was largely attributed to adverse fluctuations in both domestic and international economic conditions, directly impacting gross profit margins.
  • Major Impairment Loss on Investment Properties: The Group’s investment properties in Yiwu, Zhejiang Province, PRC, faced a fair value impairment of approximately RMB51.8 million. This was due to a significant increase in the supply of local factories available for lease, intensifying competition within the property leasing market.

Details and Insights for Shareholders

  • Unprecedented Expansion of Losses: The Board has cited that the escalation in losses is not just due to declining revenues but is also severely impacted by the property impairment, which alone nearly matches the lower end of the projected total loss for the year.
  • Macroeconomic Pressures: Both domestic and international economic uncertainties have played a significant role in weakening the Group’s financial performance. This economic backdrop has contributed to reduced demand and lower rental yields from the Group’s property assets.
  • Heightened Leasing Competition: The property market in Yiwu, Zhejiang, has become increasingly competitive, with a notable influx of new factories available for lease. This oversupply situation has forced the Group to revalue its property assets, resulting in a substantial non-cash impairment charge.
  • Pending Audit and Possible Adjustments: The financial figures provided are based on preliminary unaudited management accounts and have not yet been reviewed or finalized by the Company’s auditor or audit committee. As such, they remain subject to change.
  • Publication Timeline: The Company expects to publish its audited annual results announcement on or before 27 March 2026.

Potential Impact on Shareholders and Share Price

  • Material Price-Sensitive Information: The significant year-on-year increase in attributable losses, coupled with the large impairment charge, is likely to be material and price-sensitive. Investors should be aware that this development could lead to negative market sentiment and potential downward pressure on the Company’s share price.
  • Caution Advised: The Board specifically advises shareholders and potential investors to exercise caution when dealing in the shares of the Company, given the ongoing uncertainties and pending finalization of the financial results.

Board Composition (for Reference)

  • Executive Directors: Mr. Jin Guojun (Chairman), Mr. Zhao Hui
  • Non-Executive Directors: Ms. Gong Lijin, Ms. Huang Jingyi
  • Independent Non-Executive Directors: Mr. Chan Yin Tsung, Mr. Chow Chi Hang Tony, Dr. Wei Zhongzhe

Conclusion

The profit warning issued by Bonny International Holding Limited signals significant challenges for the Group, driven by both operational and market-specific factors. The steep increase in projected losses and property impairments, combined with ongoing economic volatility and competitive pressures in the leasing segment, may have a material negative impact on the Company’s financial position and market valuation in the near term.


Disclaimer: This article is based on the Company’s preliminary unaudited management accounts and information available as of the date of the announcement. The actual results may differ from these estimates upon final review and audit. Investors and shareholders are strongly encouraged to exercise caution and to seek professional advice before making any investment decisions.

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