Jia Yao Holdings Limited Issues Significant Profit Warning for FY2025

Key Highlights from the Profit Warning Announcement

• Major Decline in Net Profit Expected: Jia Yao Holdings Limited (“the Company”) anticipates a drastic drop in its net profit after tax for the year ended 31 December 2025. The projected net profit is estimated to be in the range of RMB 3.0 million to RMB 5.0 million, compared to approximately RMB 48.0 million reported for the year ended 31 December 2024.
• Cause of the Profit Downturn: The significant decrease is primarily attributed to adjustments in the Group’s sales strategies across various international markets. These changes were made in response to recent fluctuations in global e-cigarette regulations and ongoing turmoil in international trade, both of which negatively impacted the Group’s sales orders and overall profitability.
• Results Not Yet Audited: The figures provided are based on preliminary assessments by management and have not yet been audited or reviewed by the Company’s auditor or the audit committee. The numbers are subject to further finalization and possible adjustments.
• Upcoming Financial Disclosure: The final annual results for the year ended 31 December 2025 are expected to be published on 27 March 2026.

Important Information for Shareholders and Potential Investors

• Price-Sensitive Information: The anticipated drop of over 90% in net profit year-on-year is highly significant and is likely to be viewed as a negative development by the market. Investors should note that such a sharp reduction in profitability could have a material impact on the Company’s share price.
• Regulatory and Trade Risks: The Company has been forced to alter its international sales strategies due to adverse changes in e-cigarette regulations and trade disruptions. This highlights ongoing business risks related to regulatory environments and global market volatility.
• Call for Caution: Shareholders and investors are strongly advised to exercise caution in any dealings involving the Company’s securities until the final results are announced and more clarity is provided.
• Board Composition: As of the date of the announcement, the Company’s Board comprises Mr. Yang Yoong An (Chairman and Executive Director), Mr. Li Lin (Executive Director), Mr. Yang Fan (Non-executive Director), and three Independent Non-executive Directors: Mr. Gong Jinjun, Ms. Guo Wei, and Mr. Wang Ping.

Conclusion

The announcement from Jia Yao Holdings Limited signals a sharp decline in profitability for FY2025, mainly due to external regulatory and trade factors impacting its international business. This is a material event that investors must closely monitor, as it holds the potential to significantly affect the Company’s market valuation and future prospects. The market will be awaiting further details when the final audited results are released on 27 March 2026.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should make their own assessment and seek professional advice before making any investment decisions. The information is based on preliminary company disclosures and is subject to change upon the release of audited results.

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