Jiahua Stores Holdings Limited Issues Profit Warning for Financial Year 2025

Key Highlights

• Expected Net Loss: Jiahua Stores Holdings Limited (“the Company”, HKEX: 00602) has issued a profit warning, anticipating a significant increase in net loss for the year ended 31 December 2025. The projected loss is estimated to be in the range of RMB68.0 million to RMB72.0 million, compared to a loss of approximately RMB55.7 million for the previous year (2024).
• Price-Sensitive Information: This increased loss estimate is based on a preliminary review of unaudited consolidated management accounts and is considered inside information under Hong Kong listing rules.
• Key Factors for the Deterioration:
  • Decrease in fair value of investment properties.
  • Increase in net impairment loss on right-of-use assets and property, plant and equipment.
  • Increase in selling expenses aimed at boosting direct sales.
  • Partially offset by gains from early termination of leases and a decrease in finance costs.

Details for Investors and Shareholders

The Board of Directors underscores that the financial information disclosed so far is based on unaudited management accounts and the data currently available. The final audited results may differ from the estimates provided. The Company is still in the process of preparing and finalizing its annual results for 2025, which are subject to further adjustments and have not yet been reviewed by the auditors or the audit committee.

The official annual results announcement will be published on 26 March 2026. Shareholders and potential investors are strongly advised to exercise caution when trading the Company’s securities in light of this anticipated deterioration in financial performance.

Potential Impact on Share Value

The announcement is highly price-sensitive. The expected increase in annual loss is material and could negatively impact the Company’s share price. The market typically reacts to such warnings, especially when the loss widens year-on-year, and the underlying reasons include non-cash items such as asset impairment and a decrease in investment property value, as well as increases in selling expenses. Investors should closely monitor further disclosures, especially the final audited results and any management commentary regarding future outlook or remedial actions.

Corporate Governance and Management

The announcement was authorized by the Board and signed by Mr. Zhuang Pei Zhong, Executive Director and CFO. The Board consists of a combination of executive, non-executive, and independent non-executive directors, which provides oversight of corporate affairs and financial disclosures.

Important Dates and Actions

• Annual Results Announcement: Scheduled for 26 March 2026.
• Action for Investors: Exercise caution when dealing in the securities of Jiahua Stores Holdings Limited until further information is available.

Disclaimer: This article is based on the Company’s public announcement and unaudited preliminary financial data. Actual results may differ. The information is intended for informational purposes only and does not constitute investment advice. Investors are encouraged to read the official results when published and to consult their financial advisors before making investment decisions.

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