Grace Life-tech Holdings Limited Issues Profit Warning: Significant Reduction in Net Loss Expected for FY2025

Key Highlights

• Grace Life-tech Holdings Limited has issued a profit warning, anticipating a substantial reduction in its net loss for the financial year ended 31 December 2025 (FY2025).
• The Group expects to report a net loss in the range of USD 13 million to USD 17 million for FY2025.
• This figure represents a significant narrowing of approximately 65% to 73% compared to the net loss of approximately USD 48 million recorded for the year ended 31 December 2024 (FY2024).
• The marked improvement is primarily attributed to the absence of a one-off provision for impairment in financial assets, which negatively impacted the previous year’s results (FY2024).
• The Company’s financial results for FY2025 are still under finalization and are subject to audit and review. The final audited numbers may differ from the preliminary estimates provided in this announcement.
• The official annual results announcement for FY2025 is scheduled to be published on 31 March 2026.

Details for Shareholders and Investors

The Board of Directors of Grace Life-tech Holdings Limited has released a detailed profit warning in accordance with the Hong Kong Listing Rules and the Inside Information Provisions. The main point of interest for shareholders and potential investors is the anticipated narrowing of the Group’s net loss, which could have a material impact on the Group’s share price and investor sentiment.

Factors Influencing the Financial Results

• The significant reduction in net loss is mainly due to the absence of a one-off provision for impairment in financial assets that was recorded in FY2024. No such provision is expected for FY2025, which has contributed to the improved financial outlook.
• This development marks a potential turning point for the Group’s financial performance, as it demonstrates successful efforts to contain losses and possibly stabilize operations.

Important Notices for Shareholders

• Price Sensitivity: The narrowing of losses by such a substantial margin is highly price sensitive and may positively influence the company’s share value as it signals an improvement in the company’s financial health.
• Uncertainty in Final Numbers: Shareholders should note that the financial information in this announcement is based on preliminary unaudited management accounts and has not been audited or reviewed by the Company’s auditors or audit committee. The actual results may vary when the audit is complete and the official results are released.
• Shareholders and investors are strongly advised to review the full audited annual results announcement scheduled for 31 March 2026 for final and confirmed figures.
• The Company’s shares could experience volatility as the market reacts to the updated financial outlook.
• Investors are urged to exercise caution when dealing in the securities of Grace Life-tech Holdings Limited until the final results are published.

Company Board Composition (as of Announcement Date)

• Executive Directors: Mr. Ng Khing Yeu (Chairman), Ms. Li Xiaolan, Mr. Wang Er
• Independent Non-executive Directors: Mr. Dong Jie, Dr. Wang Ling, Mr. Leung Yiu Cho

Conclusion

The anticipated narrowing of losses for FY2025 represents a crucial development for Grace Life-tech Holdings Limited as it seeks to restore investor confidence and rebuild shareholder value after a challenging FY2024. Stakeholders are encouraged to monitor the upcoming results announcement and to approach trading in the company’s shares with due diligence until further details are released.

Disclaimer: The information provided in this article is based on preliminary unaudited figures released by Grace Life-tech Holdings Limited and is subject to final audit and review. Investors should not rely solely on this article for investment decisions and are advised to consult the official annual results and seek professional advice where appropriate. The article does not constitute any investment advice or offer.

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