Hebei Haiwei Electronic New Material Technology Co., Ltd. Issues Profit Warning for FY2025

Significant Decline Expected in Revenue and Profit; Shareholders Urged to Exercise Caution

Hebei Haiwei Electronic New Material Technology Co., Ltd. (Stock Code: 9609), a leading player in the electronic new material sector, has issued a profit warning for the financial year ended December 31, 2025. This announcement comes as part of the Company’s compliance with the Hong Kong Listing Rules and the Inside Information Provisions, and has immediate implications for investors and market watchers.

Key Points from the Profit Warning

• Revenue Decline: The Group expects its revenue for FY2025 to decrease by 15% to 25% compared to FY2024. For context, the Group reported revenue of RMB421.70 million in FY2024. This means FY2025 revenue could fall in the range of approximately RMB316 million to RMB359 million.
• Profit Drop: The profit attributable to owners of the Company is projected to drop by 40% to 50% year-on-year. In FY2024, profit attributable to owners was approximately RMB89.88 million. For FY2025, this figure is likely to be between RMB44.94 million and RMB53.93 million.
• Main Causes:
  • Intensified Domestic Competition: The Company has faced stiffer competition in the domestic market, resulting in both lower product sales volumes and reduced average selling prices. This has directly led to a significant decrease in gross profit margins.
  • One-Off Listing Expenses: The Company incurred expenses related to its recent listing on the Main Board of The Stock Exchange of Hong Kong Limited during FY2025, further impacting net profit.

Important Information for Shareholders

• Potential Share Price Impact: The expected double-digit declines in both revenue and profit are price-sensitive and may lead to negative share price movements, especially given the scale of the anticipated drops and the one-off costs tied to the listing.
• Preliminary Nature of Results: The financial data provided is based on unaudited consolidated management accounts and estimates available as of the announcement date. These numbers have not been audited or reviewed by the Company’s auditors or the audit committee, and are subject to change when final results are released.
• Further Details to Follow: Shareholders and potential investors are strongly advised to closely review the Company’s forthcoming audited annual results announcement for FY2025 before making any investment decisions.
• Caution in Trading: The Board explicitly advises shareholders and potential investors to exercise due care when dealing in the shares of the Company, given the material nature of this profit warning.

Board Composition

As of March 13, 2026, the Company’s Board comprises:
Executive Directors: Mr. Song Wenlan (Chairman), Mr. Cao Chaozhi, Mr. Sheng Zhixuan, Mr. Liu Qingbin
Non-Executive Director: Ms. Zhong Ying
Independent Non-Executive Directors: Ms. Gu Qun, Mr. Zhang Hao, Mr. Yu Qing

Conclusion

The profit warning issued by Hebei Haiwei Electronic New Material Technology Co., Ltd. signals a challenging operating environment and significant financial headwinds for FY2025. The dual impact of increased competition and substantial listing expenses are expected to materially reduce both top-line and bottom-line performance, which is highly relevant and potentially market-moving information for current and prospective investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to review the Company’s official disclosures and consult with professional advisors before making any investment decisions. The financial figures discussed are based on preliminary unaudited estimates and may be subject to adjustments upon final audit.

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