Dynasty Fine Wines Group Limited Issues Profit Warning for FY2025

Dynasty Fine Wines Group Limited (Stock code: 00828) has issued a profit warning based on its preliminary unaudited financial results for the year ended 31 December 2025 (FY2025). This is a significant development that shareholders and potential investors should pay close attention to, as it is likely to have a material impact on the company’s share price.

Key Highlights from the Profit Warning

• Substantial Decline in Profit: The Group expects to report a consolidated profit attributable to shareholders of approximately HK\$11.7 million to HK\$15.0 million for FY2025. This represents a sharp year-on-year decrease of around 55% to 65% compared to a profit of HK\$33.4 million for the year ended 31 December 2024.
• Significant Drop in Revenue: Revenue for FY2025 is estimated to be between HK\$168 million and HK\$175 million, down from HK\$271 million in FY2024. This corresponds to a decline of about 35% to 38%.
• Primary Causes of Decline:
  • Marked drop in sales revenue, especially from medium to high-end products, as a result of macroeconomic challenges and weak demand in the PRC wine market.
  • Increase in loss allowances for trade receivables, indicating potential collection issues or credit risk among customers.
  • These negative factors were partially offset by a net gain on compensatory surrender recorded during the year, though this was not sufficient to prevent the profit decline.

Strategic Responses and Outlook

• Market Response: The Group is actively monitoring market conditions and has adjusted its business strategies to mitigate adverse impacts. Initiatives include:
  • Stabilizing and penetrating core markets with superior products.
  • Focusing on low-alcohol and younger consumer markets and ramping up new product development leveraging brand advantages.
  • Expanding online business channels to capture emerging opportunities.
  • Strengthening cost controls and taking timely measures to manage expenses.
• Ongoing Uncertainty: The financial results for FY2025 are still being finalized and have yet to be reviewed by the Company’s audit committee or audited by external auditors. Adjustments may be made during the audit process, so the final results may differ from this preliminary announcement.
• Next Steps: The Company expects to release its full FY2025 results by the end of March 2026. Investors are strongly advised to review the official results announcement before making any trading decisions.

Board Composition

As of the announcement date (13 March 2026), the Board comprises three executive Directors (Mr. Wan Shoupeng, Mr. He Chongfu, Ms. Zhao Haijing), three non-executive Directors (Ms. Caroline Bois Heriard Dubreuil, Ms. Sophie Phe, Mr. Alain Jacques Gilbert Li), and three independent non-executive Directors (Mr. Yeung Ting Lap Derek Emory, Mr. Sun David Lee, Ms. Chung Wai Hang).

Critical Information for Shareholders and Potential Investors

• This announcement discloses material inside information in accordance with Hong Kong Listing Rules and the Securities and Futures Ordinance.
• The anticipated sharp decline in profit and revenue is highly price-sensitive and could lead to significant share price volatility.
• Shareholders and potential investors are urged to exercise caution when dealing in the shares of the Company until the audited results are published.

Disclaimer: The information presented above is based on the Company’s preliminary unaudited financial accounts and management assessment as of the date of the announcement. The final audited results may differ from the figures and statements provided. Investors should consult the official results announcement and seek professional financial advice before making investment decisions.

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