KangLi International Issues Significant Profit Warning for FY2025

Key Points for Investors

• Sharp Decline in Net Profit: KangLi International Holdings Limited expects to record a net profit of approximately RMB40 million for the year ended 31 December 2025, marking a steep decline of around 56.9% compared to RMB92.703 million in 2024.
• Primary Causes: The Board attributes this substantial decrease to:
  • A decrease in both overall sales volume and average selling prices of the Group’s products.
  • A reduction in gross profit margin, driven by increased average production costs due to lower production volume.
• Unaudited Financials: The profit warning is based on unaudited consolidated management accounts and preliminary assessment by the Board. These figures have not yet been reviewed by the audit committee and may be subject to further adjustments.
• Upcoming Disclosure: Full details of the Group’s business performance will be disclosed in the official results announcement, expected to be published before the end of March 2026.

Potential Impact on Shareholders and Share Price

The magnitude of the profit decline is likely to be highly price-sensitive. Such a significant fall in net profit, particularly more than 50%, could have a material impact on investor sentiment and the Company’s share price. The dual factors of reduced sales and increased costs indicate challenges in both demand and operational efficiency.

Shareholders and potential investors should be aware that these results reflect underlying business difficulties and may signal further risks ahead. The announcement also advises caution when dealing in the Company’s shares until more detailed financial information is available.

Board and Management Information

The Board comprises five executive Directors: Mr. Mei Zefeng, Ms. Liu Ping (Chairman), Mr. Zhang Zhihong, Ms. Lu Xiaoyu, and Mr. Xu Chao, as well as three independent non-executive Directors: Mr. Lau Ying Kit, Mr. Yang Guang, and Mr. Cao Cheng. This composition may be relevant for assessing corporate governance and management response to the current challenges.

Conclusion

The profit warning issued by KangLi International Holdings Limited is a material update for shareholders and prospective investors. The expected sharp decline in profitability, driven by falling sales and rising costs, should be monitored closely. Investors are strongly advised to exercise caution and remain alert for the forthcoming official results announcement, which may contain further details or adjustments.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The financial figures presented are based on preliminary unaudited estimates which may be subject to further review and adjustment. Investors are advised to consult official disclosures and seek professional advice before making any investment decisions.

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