Teamway International Group Holdings Limited Issues Profit Warning: Significant Reduction in Loss Expected for FY2025

Key Highlights for Investors

• Significant Reduction in Loss: The Group expects to record a decrease in loss attributable to owners of the parent for the year ending 31 December 2025 (FY2025) by approximately 60% to 70% compared to the previous year.
• Previous Losses: For the year ended 31 December 2024 (FY2024), the loss attributable to owners of the parent was approximately RMB105.6 million.
• Potential Impact: Such a dramatic reduction in loss could be a positive signal for investors and the market, potentially impacting the Company’s share price.

Details and Reasons for the Improvement

According to the preliminary assessment based on the latest unaudited financial information, management expects the loss for FY2025 to reduce substantially due to the following factors:

1. Absence of Impairment Loss: In FY2025, there is no impairment loss on property, plant, and equipment, as opposed to a charge of RMB22.13 million in FY2024. This one-off impairment significantly affected the previous year’s results and its absence will improve profitability.
2. Reduced Production Costs: The Company moved production back to its own factories in FY2025 rather than partially outsourcing as it did in FY2024. This strategic shift led to a marked decrease in cost of sales due to lower production costs.
3. Stringent Cost Control Measures: Additional reductions in loss are attributed to cost control initiatives, including reductions in labour costs and transportation costs. These ongoing measures are expected to support the Company’s bottom line going forward.

Important Information for Shareholders

• Share Price Sensitivity: The anticipated reduction in loss is a material piece of inside information. It may influence investor sentiment and thus the Company’s share price. Investors should note that this is a significant positive development relative to the previous period’s performance.
• Preliminary Figures: The information disclosed is based on unaudited management accounts and a preliminary assessment. Final audited results may differ, depending on adjustments or amendments in the finalisation process.
• Caution Advised: Shareholders and potential investors are urged to exercise caution when dealing in the Company’s shares given the preliminary nature of the figures.
• Board and Management: The announcement is issued by Executive Director Mr. Zeng Wenyou, with the current board also including one non-executive director and three independent non-executive directors as of the date of the announcement.

Conclusion

Teamway International Group Holdings Limited’s announcement of a 60%-70% reduction in loss for FY2025 compared to FY2024 represents a notable turnaround in the Company’s financial performance. The Company attributes this improvement to the absence of impairment charges, lower production costs from insourcing, and effective cost controls. This news is potentially price sensitive and could impact the value of the Company’s shares.

Disclaimer: This article is based on unaudited and preliminary financial information disclosed by Teamway International Group Holdings Limited. Actual results may differ upon audit and finalisation. Investors should exercise caution and seek professional advice before making investment decisions.

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