Labixiaoxin Snacks Group Limited Issues Positive Profit Alert: Key Details for Investors

Summary of Key Points

• Expected Turnaround to Profit: The Group anticipates a profit after tax of approximately RMB11.7 million for the year ended 31 December 2025, a significant reversal from a loss after tax of RMB93.5 million in 2024.
• Substantial Revenue Growth: Total sales are expected to reach around RMB969.8 million for 2025, up from RMB866.7 million in 2024.
• Sales Channels Expansion: The marked increase in revenue is mainly attributed to expanded sales through snack convenience store chains and e-commerce channels.
• Cost Control Measures: The profit improvement is also driven by reduced allowance for expected credit losses of trade receivables, as well as lower advertising, promotion, and administrative expenses due to the Group’s ongoing cost control initiatives.

Detailed Analysis for Shareholders and Investors

Labixiaoxin Snacks Group Limited has issued a positive profit alert, signaling a dramatic improvement in its financial performance for the year ended 31 December 2025. Based on a preliminary review of unaudited management accounts, the Board expects the Group to record a profit after tax of approximately RMB11.7 million, compared to a substantial after-tax loss of RMB93.5 million in the previous year. This turnaround is a pivotal development for the company and could be a major driver for share price movement.

Revenue Performance

The Group is forecasting a robust increase in total sales, estimated at around RMB969.8 million for 2025, up from RMB866.7 million in 2024. This growth is largely attributed to the Group’s success in expanding its sales channels, particularly through snack convenience store chains and e-commerce platforms. The continued shift toward these distribution methods is expected to enhance both the Group’s market reach and revenue stability.

Factors Influencing Profitability

1. Increased Sales: The boost in sales through modern retail and online channels has been the primary driver of revenue and profit growth.
2. Credit Losses: The Group benefited from a decrease in the allowance for expected credit losses on trade receivables, which positively impacted the bottom line.
3. Cost Control: There has been a notable reduction in advertising, promotion, and administrative expenses, attributed to effective cost control measures implemented during the year. This operational efficiency has contributed directly to the expected return to profitability.

What Shareholders Need to Know

• This announcement is based on preliminary management accounts and has not yet been audited or reviewed by the Company’s auditors or audit committee. Final results may differ.
• The Company’s full audited results for the year ended 31 December 2025 are expected to be published before the end of March 2026. Investors should review these results when released.
• The Board specifically advises shareholders and potential investors to exercise caution in dealing in the shares of the Company until the audited results are confirmed.
• This positive profit alert could potentially impact the Company’s share price, as it marks a significant reversal from losses to profits, supported by both revenue growth and cost discipline.

Corporate Governance and Board Composition

As of the date of the announcement (11 March 2026), the Board comprises:

• Executive Directors: Zheng Yu Long, Zheng Yu Shuang, Zheng Yu Huan (Chairman), Wu Qiongyao
• Non-Executive Director: Li Hung Kong
• Independent Non-Executive Directors: Li Biao, Chung Yau Tong, So Ching Tung, JP

Conclusion

The issuance of this positive profit alert by Labixiaoxin Snacks Group Limited is a noteworthy, price-sensitive event. It underscores a dramatic improvement in the Group’s operational and financial performance, driven by strong growth in new sales channels and stringent cost management. Investors are strongly encouraged to monitor the upcoming full-year results announcement and to exercise due caution in trading the Company’s shares in the interim.

Disclaimer: This article is a detailed summary based on the Company’s public announcement and unaudited management information as of 11 March 2026. Final audited results may differ. Investors should not rely solely on this article for investment decisions and are advised to consult the Company’s official results announcement and seek professional financial advice as appropriate.

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