Greatview Aseptic Packaging Issues Profit Warning: Sharp Decline in Net Profit and Revenue Expected for 2025

Greatview Aseptic Packaging Company Limited (Stock code: 00468), a major supplier in the aseptic packaging industry, has issued a significant profit warning for the financial years ending 31 December 2024 and 2025. The company’s announcement contains several key points that shareholders and potential investors need to be aware of, as these are likely to have a material impact on the company’s share price.

Key Highlights from the Announcement

• Substantial Profit Decline: The company expects to report an annual net profit for 2025 in the range of RMB48.0 million to RMB58.0 million. This represents a dramatic decline of approximately 82.8% to 79.2% compared to the net profit of RMB278.3 million in 2024.
• Significant Revenue Drop: Revenue for 2025 is expected to be around RMB1.86 billion, down 17.3% from RMB2.25 billion in 2024.
• Profitability Factors: The steep fall in net profit is attributed to:
  • A change in accounting treatment for the company’s International Business investment in March 2025, leading to a sharp reduction in the related share of profit.
  • No net fair value gain on financial assets at fair value through profit and loss (FVTPL) for 2025, due to unavailable financial information on these assets, unlike the previous year.
  • A decline in gross profit margin in the export business.
• Revenue Drivers: The revenue decline has been driven by both a decrease in total sales volume and a reduction in the unit price of exported products.
• Results Are Preliminary: The financial figures are based on unaudited management accounts and have not yet been reviewed or audited by the company’s independent auditors or audit committee. Final results may differ.
• Timing of Final Results: The company expects to announce its audited results for 2024 and 2025 on 8 April 2026, following completion of the audit and approval by the Audit Committee and the Board.
• Continued Suspension of Trading: Trading in the company’s shares has been suspended since 9:00 a.m. on 19 February 2025 and will remain suspended until further notice.

Implications for Shareholders and Investors

• Material Deterioration in Performance: The anticipated sharp declines in both profit and revenue are likely to have a negative impact on the company’s valuation and investor sentiment.
• Accounting and Operational Challenges: Changes in accounting treatment and an inability to recognize fair value gains indicate potential risks and uncertainties in the company’s financial reporting and business model.
• Export Market Headwinds: Lower sales volumes and falling export prices suggest that the company faces significant competitive and market pressures internationally.
• Suspension of Trading: The continued trading suspension adds another layer of uncertainty for investors, as liquidity is restricted and the timeline for resumption is unknown.

Board and Management

The announcement was signed by Chairman and Executive Director Yuan Xunjun, with the Board currently composed of two executive directors, five non-executive directors, and four independent non-executive directors.

Investor Advisory

Shareholders and potential investors are strongly advised to exercise caution when dealing in the company’s shares, given the significant decline in financial performance, accounting challenges, and the ongoing trading suspension.

Disclaimer: This article is based on an official profit warning announcement by Greatview Aseptic Packaging Company Limited. The information provided is for general informational purposes only and should not be construed as financial or investment advice. Investors should refer to official company disclosures and seek professional advice before making investment decisions.

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