Sandmartin International Holdings Issues Significant Profit Warning for FY2025

Sandmartin International Holdings Limited (Stock Code: 482) has issued a profit warning, alerting investors and shareholders to a much larger anticipated net loss for the year ended 31 December 2025. This announcement was made under the regulatory requirements of the Hong Kong Stock Exchange.

Key Highlights of the Report

• Expected Loss Surge: The Group is expected to record a consolidated net loss of not less than HK\$127 million for the year ended 31 December 2025. This represents a sharp increase when compared to the net loss of HK\$58.54 million recorded in the previous financial year (ended 31 December 2024).
• Major Contributing Factors:
  • Decreased Revenue: The Group has experienced a decline in revenue, which has been a primary driver of the increased losses.
  • Increased Provision for Expected Credit Losses: There has been a notable rise in the provision for expected credit losses on financial assets, indicating higher anticipated defaults or impairments.
  • Reduced Fair Value Gains on Investment Properties: The increase in the fair value of the Group’s investment properties has slowed down, reducing gains that could offset other losses.

Important Shareholder Information & Price Sensitive Issues

• Significant Worsening of Financial Performance: The expected net loss is more than double the loss recorded in 2024. This substantial deterioration in financial performance is highly likely to affect market sentiment and could exert downward pressure on the Company’s share price.
• Unaudited Figures & Potential Adjustments: The figures disclosed are based on the Company’s preliminary review of unaudited consolidated management accounts. Investors should note that these numbers have not yet been reviewed by the audit committee and may be subject to further adjustments.
• Official Results Announcement Scheduled: The Company plans to publish its audited consolidated annual results for the reporting period on or before 31 March 2026.
• Investor Caution Advised: The Board specifically advises shareholders and potential investors to exercise caution when trading the Company’s shares, given the significant negative swing in expected financial results.

Management and Board Composition

As of the date of the announcement (27 March 2026), the Board comprises:

• Executive Directors: Mr. Hung Tsung Chin and Mr. Chen Wei Chun
• Non-Executive Director: Mr. Kuo Jen Hao (Chairman)
• Independent Non-Executive Directors: Mr. Wu Chia Ming, Ms. Chen Wei-Hui, and Mr. Lu Ming-Shiuan

Conclusion

The profit warning issued by Sandmartin International Holdings Limited is a clear signal of deteriorating financial performance, with a projected net loss more than doubling year-on-year. The combination of declining revenues, increased credit loss provisions, and weaker gains from investment properties raises concerns about the Group’s operational and financial stability. These developments are likely to be price sensitive and could have a material impact on the Company’s share price and investor confidence.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The financial figures discussed are based on unaudited preliminary assessments and may change upon finalization and audit. Investors are strongly advised to perform their own due diligence and consult professional advisors before making any investment decisions.

View SANDMARTIN INTL Historical chart here