Winshine Science Company Limited Issues Significant Profit Warning for FY2025

Winshine Science Company Limited (Stock Code: 209) has issued a profit warning indicating that its financial performance for the year ended 31 December 2025 (FY2025) is expected to deteriorate significantly compared to the previous year. This announcement, made in accordance with regulatory requirements in Hong Kong, contains several critical updates that shareholders and potential investors must carefully consider.

Key Points from the Announcement

• Expected Loss for FY2025: The Group anticipates recording a loss attributable to shareholders of not more than HK\$95.0 million for FY2025. This is a substantial increase compared to the loss of approximately HK\$73.0 million recorded for the year ended 31 December 2024.
• Primary Factors Behind the Increased Loss:
  • Decline in Revenue and Profits: The decline is largely attributed to the increase in tariffs imposed by the United States on Chinese imports during the first half of FY2025. This policy shift led to a continuous decline in order volumes from U.S. customers, resulting in a significant drop in gross profits from U.S. sales.
  • Rising Operating Costs in China: The Group also faced an increase in minimum wages and social insurance costs in China, further eroding profitability.
• Unaudited Figures: The numbers provided are based on a preliminary review of the Group’s unaudited management accounts for FY2025. These figures have not yet been reviewed or audited by the Company’s auditors.
• Final Results Announcement: The Company plans to publish its final audited results for FY2025 by the end of March 2026. More detailed financial information and performance analysis will be provided at that time.
• Caution to Investors: The Company explicitly advises shareholders and potential investors to exercise caution when dealing in its shares, given the potential for further negative developments and share price volatility.

Implications for Shareholders and Investors

• The expected increase in losses and the specific mention of adverse factors such as U.S. tariffs and rising costs in China are material, price-sensitive disclosures that may affect the Company’s share value.
• The cautionary statement signals that the Board is concerned about potential negative market reactions. Investors should closely monitor the Company’s announcements and be prepared for ongoing volatility in Winshine Science’s share price.
• Those holding shares or considering investment in Winshine Science should factor in the heightened risks stemming from both external trade policy changes and internal cost pressures.

Board Composition as of Announcement Date

• Chairlady and Chief Executive Officer: Ms. Wang Jingyu
• Executive Director: Mr. Yiu Chun Kong
• Independent Non-Executive Directors: Ms. Wu Yan Yee, Ms. Wong Tin Ying Jade, Mr. Wu Jiwei
• Non-Executive Director: Mr. Lin Shaopeng

The announcement was authorized and signed by Ms. Wang Jingyu, Chairlady and Chief Executive Officer, on 12 March 2026 in Hong Kong.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisors before making any investment decisions. The information provided is based on preliminary unaudited data and may be subject to change. The company’s share price may be affected by the developments discussed above.

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