Chanhigh Holdings Issues Profit Warning for FY2025 Amid Construction Industry Downturn

Chanhigh Holdings Limited (Stock code: 2017) has released a profit warning that could have significant implications for its share price and investor sentiment. The announcement, made pursuant to the Hong Kong Listing Rules and the Inside Information Provisions of the Securities and Futures Ordinance, provides shareholders and potential investors with an early update on the Group’s expected financial performance for the year ended 31 December 2025.

Key Points in the Report

• Significant Drop in Net Profit Expected: The Group anticipates that net profit attributable to owners will fall sharply to approximately RMB5.0 million to RMB15.0 million for FY2025, compared to RMB27.3 million reported for FY2024. This implies a potential profit decrease of more than 80% at the lower end of the guidance.
• Primary Cause – Industry Downturn: The main reason for this profit decline is identified as a decrease in overall revenue and gross margin from construction projects, which the Board attributes to a general downturn in the construction industry across mainland China.
• Financial Position Remains Solid: Despite the expected decline in net profits, the Board emphasizes that the overall operations and financial position of Chanhigh Holdings remain sound and intact.
• Final Results Pending: The profit figures and other financial details are preliminary, based on unaudited management accounts. The final results are subject to review and confirmation by the Company’s auditor and approval by both the audit committee and the Board, with the official results announcement expected before the end of March 2026.

Important Information for Shareholders and Investors

• Potential Share Price Impact: The substantial decrease in profit guidance is clearly price sensitive. Investors should be aware that this profit warning may result in increased volatility in the Company’s share price as the market digests the implications of a weaker financial outlook.
• Operational Stability: The Group’s management has sought to reassure investors that, despite the anticipated profit reduction, the underlying business and financial health of Chanhigh Holdings remain robust.
• Exercise Caution: The Board urges shareholders and potential investors to exercise caution when dealing in the Company’s shares ahead of the release of the final audited results.
• Leadership and Board Structure: The announcement confirms the current composition of the Board, including three executive directors (Peng Tianbin, Peng Yonghui, Peng Daosheng), a non-executive director (Wang Sufen), and three independent non-executive directors (Chan Lap Ip, Shi Weixing, Yang Zhongkai).

Conclusion

Chanhigh Holdings’ profit warning highlights the challenges faced by construction companies in mainland China amidst a sector downturn. The expectation of a significantly lower net profit for FY2025 is a key development for investors, signaling potential headwinds for earnings and possible share price movements in the coming months. Investors should monitor further disclosures and await the detailed annual results scheduled for release by the end of March 2026.

Disclaimer: The above summary is for informational purposes only and does not constitute investment advice. Investors should refer to the official announcements and consult with financial advisors before making any investment decisions. The final results are subject to audit and Board approval, and may differ from the preliminary figures disclosed.

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