Vala Inc. Issues Profit Warning for FY2025: Major Losses Expected

Key Points

• Vala Inc. expects a substantial increase in losses for the year ended 31 December 2025.
• Estimated comprehensive loss attributable to owners: RMB140 million to RMB160 million, compared to RMB57 million in 2024.
• Three main drivers for the loss:
  1. Losses from disposal of subsidiaries and associates in 2025 (no such losses in 2024).
  2. Decreased net profit from credit facilitation business due to cessation of new business since July 2025.
  3. Significant increase in marketing and operating costs for Vala vehicles within the Valalife business.
• Annual results have not yet been audited or reviewed by the committee.
• Final results for FY2025 expected to be released by late March 2026.

Details for Investors

Vala Inc. (Stock Code: 2051) has issued a profit warning, disclosing that it anticipates a sharp increase in losses for the financial year ended 31 December 2025. Based on unaudited consolidated management accounts and information currently available to the Board, the Group projects that the comprehensive loss attributable to owners will be in the range of RMB140 million to RMB160 million. This represents nearly a threefold increase compared to the comprehensive loss of approximately RMB57 million recorded in FY2024.

Factors Leading to Increased Losses

1. Disposal of subsidiaries and associates: The Group incurred losses during the disposal process in 2025. This marks a significant departure from 2024, when no such losses were recorded.
2. Credit Facilitation Business: The Group experienced a decrease in overall net profit from its credit facilitation segment, mainly because it ceased to acquire new business in this segment from July 2025 onwards. This strategic shift has negatively impacted earnings.
3. Valalife Business Costs: There has been a substantial increase in marketing and operating costs associated with Vala vehicles in the Valalife business. These heightened expenses have further weighed down profitability compared to the previous year.

Potential Impact on Share Value

The announcement is considered price sensitive, as it signals a much larger loss for FY2025 than previously reported in FY2024. Investors and shareholders should be aware that this could negatively impact Vala Inc.’s share price. The cessation of new business activity in a key segment and increased operating costs indicate challenges in both revenue generation and cost control. Additionally, losses from the disposal of subsidiaries and associates may raise concerns about the Group’s strategic direction and asset management.

Process and Timing

The company is still finalizing its annual results for FY2025, and the figures provided are preliminary, based on management’s assessment. These numbers have not been reviewed by the audit committee or independent auditors and may be subject to adjustment. The audited results are expected to be published by late March 2026.

Board Composition

The Board currently consists of Mr. Sun Haitao (Chairman, CEO, and Executive Director), Ms. Wu Shan (Executive Director), Ms. Zou Yunli (Non-Executive Director), and independent non-executive directors Mr. Ye Xiang, Mr. Xu Xuchu, and Mr. Shou Jian.

Advice to Shareholders and Investors

Shareholders and potential investors are strongly advised to exercise caution when dealing in the shares of Vala Inc. until the final audited results are released and more clarity is available regarding the Group’s financial position.

Disclaimer

The information provided herein is based on preliminary, unaudited figures and management assessment, and may be subject to change following review by the Company’s auditors. This article does not constitute investment advice. Investors should consult their financial advisors and exercise caution when making investment decisions related to Vala Inc.

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