Chinese People Holdings Issues Significant Profit Warning for FY2025

Key Highlights from the Announcement

• Expected Loss for FY2025: The Group anticipates a substantial net loss of approximately RMB143 million for the year ended 31 December 2025. This represents a sharp turnaround from the profit of RMB59 million recorded in FY2024.
• Major Cause of Loss: The loss is primarily attributed to the Group’s share of losses from joint ventures, totaling RMB173 million. In contrast, the joint ventures contributed a profit of RMB70 million in FY2024.
• Impairment Loss: The losses at joint ventures are mainly due to significant impairment charges against assets, including property, plant, equipment, and right-of-use assets.
• Financials Not Finalized: The figures provided are based on preliminary unaudited management accounts and have not yet been reviewed by the audit committee or audited by external auditors. Final numbers may differ.
• Audit Process Ongoing: The Group’s auditors are currently conducting their review of the FY2025 consolidated financial statements.
• Further Updates: The Company will monitor the situation closely and provide updates if necessary.
• Annual Results Announcement: Detailed audited financial results for FY2025 will be released on 30 March 2026.

Important Information for Shareholders and Investors

Potential Price Sensitivity: The sharp reversal from profit to loss, especially due to large impairment losses and negative joint venture performance, is likely to be price sensitive. Investors should expect potential volatility in the Company’s share price as the market digests this information.

Caution Advised: The Company explicitly advises shareholders and potential investors to exercise caution in dealing with its shares, given the uncertainty and potential for actual results to differ from preliminary estimates.

Upcoming Disclosure: Investors should pay close attention to the audited annual results announcement scheduled for 30 March 2026 for more comprehensive and final financial details.

Additional Details

• The Board comprises five Executive Directors, one Non-executive Director, and three Independent Non-executive Directors, reflecting robust governance.
• The announcement was signed by Mr. Fan Fangyi, Managing Director and Executive Director, on behalf of the Board.
• The Company is incorporated in Bermuda with limited liability and is listed under stock code 681 on the Hong Kong Stock Exchange.
• The announcement was made in compliance with relevant Hong Kong regulatory requirements concerning inside information.

Conclusion

This profit warning represents a material change in the Group’s financial outlook for FY2025 and is expected to have significant implications for the Company’s share price and investor sentiment. Shareholders and investors should stay alert for further updates and the upcoming audited financial statement.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with professional advisors before making any investment decisions. The actual financial results may differ from the estimates provided above. The Company and its Board are not liable for any actions taken based on the information in this article.

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