Ming Fai International Holdings Issues Profit Warning for FY2025

Key Highlights from the Announcement

• Profit Forecast: Ming Fai International Holdings Limited expects to record a profit attributable to owners of not less than HK\$100 million for the year ended 31 December 2025, a significant decrease compared to approximately HK\$143.2 million for the prior year.
• Primary Cause: The reduction in profit is primarily attributed to a decrease in gross margin, which stems from increased manufacturing cost pressures, heightened volatility in the external environment, and intensified industry competition.
• Financial Reporting: The figures disclosed are based on the latest unaudited consolidated management accounts and have not been reviewed or audited by the Company’s auditor. The audited results for FY2025 are expected to be published by the end of March 2026.
• Risk Monitoring: The Board is actively monitoring financial performance and risks, and will continue to assess operations and exposures to uncertainties.
• Business Strategy: Despite the challenging environment, the Group will continue to explore new business opportunities leveraging its strengths. The Company will take necessary measures and make further announcements as appropriate.
• Leadership: The announcement was made under the authority of Chairman CHING Chi Fai, and the current Board comprises both executive and independent non-executive directors.
• Investor Guidance: Shareholders and potential investors are specifically advised to exercise caution when dealing in the Company’s shares, given the potential impact of these developments on share value.

Important Information for Shareholders

Profit Decline: The expected decrease in profit is substantial and may be considered price-sensitive, as it reflects a deterioration in the Company’s financial performance. Shareholders should note that the profit for FY2025 is projected to be at least 30% lower than FY2024.

Cost Pressures & Competition: The Company is facing increased manufacturing costs and intensified competition. These factors could have ongoing effects on profitability, which may impact the Company’s ability to maintain or grow dividends, and could influence future share price movements.

External Volatility: Volatility in the external environment, possibly including macroeconomic factors, geopolitical risks, or supply chain disruptions, is cited as a contributor to profit decline. Investors should factor this uncertainty into their investment decisions.

Unaudited Figures: The profit warning is based on unaudited management accounts and may be subject to change following audit review. The final, audited results will be published by March 2026 and could differ from preliminary estimates.

Ongoing Disclosure: The Company has committed to making further announcements as appropriate, signaling that additional price-sensitive information could emerge before the audited results are released.

Investor Caution: Due to the material decrease in profit and the uncertain outlook, the Board advises shareholders and potential investors to exercise caution when trading in the Company’s shares.

Conclusion

The profit warning issued by Ming Fai International Holdings Limited is a material development that is likely to have implications for its share price and investor sentiment. The significant expected decline in profit, combined with increased cost pressures and industry competition, underscores a challenging outlook for FY2025. Investors should closely monitor subsequent announcements and the release of audited financial results for further information.

Disclaimer

The content above is for informational purposes only and does not constitute investment advice. Investors are urged to conduct their own due diligence and consult with professional advisors before making any investment decisions. The information is based on unaudited preliminary data and may be subject to change.

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