Neway Group Holdings Issues Profit Warning for FY2025

Key Highlights

• Expected Net Loss for FY2025: The Group anticipates recording a net loss in the range of HK\$45 million to HK\$60 million for the year ending 31 December 2025. This represents an improvement compared to the net loss of approximately HK\$77.1 million in FY2024.
• Profit Warning Issued: This announcement is issued pursuant to the Hong Kong Listing Rules and the Inside Information Provisions under the Securities and Futures Ordinance. It is a formal profit warning and thus price-sensitive, warranting close attention from shareholders and potential investors.
• Primary Reasons for the Loss:
  • Fair Value Loss on Investment Properties: The Group expects a fair value loss of approximately HK\$6.4 million on investment properties in FY2025, compared to HK\$22.2 million in FY2024.
  • Ongoing Segment Losses: The manufacturing and sales business, as well as the property development business, are expected to remain loss-making for FY2025.
• Uncertainty Remains: The figures are preliminary and based on unaudited management accounts. Final audited results are scheduled for publication on Friday, 27 March 2026.

Details for Investors

Neway Group Holdings Limited has issued a formal profit warning to shareholders and the investment community. Based on a preliminary review of its unaudited consolidated management accounts, the Group expects to post a net loss between HK\$45 million and HK\$60 million for the financial year ending 31 December 2025.

While this projected loss remains significant, it reflects a narrowing deficit compared to the previous year’s loss of approximately HK\$77.1 million. The improvement is mainly due to a substantial reduction in fair value loss on investment properties (down to HK\$6.4 million from HK\$22.2 million in FY2024). Nevertheless, ongoing losses from the Group’s core manufacturing and sales operations, as well as its property development business, continue to weigh heavily on overall performance.

The Board has emphasized that these results are not yet finalized. Shareholders and potential investors should note that the final audited results for FY2025 may differ from these preliminary numbers, as the Group is still in the process of finalizing its accounts. The definitive results are expected to be released on 27 March 2026.

Important Notes for Shareholders

• This announcement is price-sensitive and may affect the Company’s share price.
  The Company explicitly advises shareholders and potential investors to exercise caution when dealing in its shares. Any changes in the loss estimates or additional negative developments could further impact market sentiment.
• The Board, led by Chairman and Chief Executive Officer Mr. Suek Ka Lun, Ernie, remains committed to communicating material developments in a timely manner. The Board currently comprises a mix of executive, non-executive, and independent non-executive Directors.

Conclusion

The ongoing losses, while improved year-on-year, continue to highlight the operational and valuation challenges facing Neway Group Holdings. The reduction in fair value loss on investment properties is a positive signal, but the persistent losses in core business segments remain a concern. Investors should closely monitor future announcements, especially the final audited results in March 2026.

Disclaimer: The information above is based on the Company’s preliminary unaudited management accounts and is subject to change. Investors are advised to exercise caution and consult their professional advisers before making any investment decisions. The Company will publish its audited results for FY2025 on 27 March 2026.

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