Lesi Group Limited Issues Profit Warning for FY2025

Key Highlights from the Latest Announcement

• Significant Profit Decline Expected: Lesi Group Limited has announced that, based on preliminary unaudited management accounts, the net profit for the year ended 31 December 2025 is expected to decrease sharply to no less than approximately RMB39.0 million. This represents a substantial drop from the net profit of approximately RMB73.2 million reported for the year ended 31 December 2024.
• Reasons for Profit Decline:
  • Lower Gross Profit: The Group’s gross profit is expected to decrease by around RMB18.0 million, mainly due to reduced rebate rates from media partners. This reduction is attributed to changes in the rebate policies implemented by these partners.
  • Rising Selling and Marketing Expenses: There has been an increase in selling and marketing expenses, largely driven by higher employee benefit expenses stemming from the expansion of the sales and marketing department.
  • Higher General and Administrative Expenses: The Group experienced a rise in general and administrative expenses, which can be traced to the increased depreciation costs of the new office located at Xingdi Center in Beijing, as well as higher employee benefit expenses due to a greater number of operational staff.

Details Investors Should Note

• Preliminary and Unaudited Figures: The disclosed financial information is based on a preliminary review by the Board and has not been audited, confirmed, or reviewed by the Company’s auditors or audit committee. The final audited results for FY2025 may be subject to adjustments.
• Timing of Final Results: The Group expects to publish the audited annual results for the year ended 31 December 2025 on 27 March 2026.
• Potential Impact on Share Price: The substantial decrease in forecasted net profit, combined with rising operational and employee costs, and changing rebate policies from media partners, constitutes material inside information. This profit warning is likely to be price sensitive and could have a significant impact on the Company’s share value.
• Caution to Shareholders and Investors: Both shareholders and potential investors are advised to exercise caution when dealing in the Company’s securities, given the expected decrease in profitability and the uncertainties regarding the final results.

Board and Management Structure

As of the date of the announcement, the Board consists of the following members:

• Mr. Zhao Libing (Chairman of the Board and Executive Director)
• Mr. Yu Canliang (Executive Director)
• Mr. Nie Jiang (Executive Director)
• Ms. Shu Qing (Executive Director)
• Ms. Chang Qing (Non-Executive Director)
• Mr. Lu Yao (Independent Non-Executive Director)
• Ms. Zheng Hong (Independent Non-Executive Director)
• Mr. Hu Hui (Independent Non-Executive Director)

Conclusion

Lesi Group Limited’s profit warning for FY2025 signals a challenging year ahead, marked by lower rebates from media partners, rising staff and operating costs, and an expected halving of net profit compared to the prior year. These developments are highly material and may influence investor sentiment and share price performance. Shareholders and potential investors should stay informed and act with caution as the Group moves towards the release of its final audited results in March 2026.

Disclaimer: This article is based on the Company’s official announcement and is intended for informational purposes only. The final financial figures are subject to audit and may change. Investors are advised to exercise caution and consult their financial advisors before making investment decisions.

View LESI GROUP Historical chart here