Goodbaby International Issues Profit Warning: Anticipates Significant Decline in Net Profit for FY2025

Goodbaby International Holdings Limited (Stock Code: 1086) has released a profit warning, signaling a substantial decrease in net profit for the fiscal year ended 31 December 2025. The announcement, made in compliance with Hong Kong Stock Exchange regulations, carries important implications for shareholders and potential investors.

Key Points from the Report

• Expected Net Profit Decline: The company forecasts an estimated 35% to 45% decrease in net profit for FY2025 compared to FY2024. In 2024, net profit was approximately HKD 356.2 million.
• Primary Causes of the Decline:
  • Decrease in Gross Profit: Driven by a slight drop in revenue for the group, although gross margin reportedly recovered in the second half of 2025.
  • Increase in Income Tax: The rise in income tax was mainly due to higher profits recorded in regions with steeper tax rates and added withholding tax on dividends distributed between group entities.
  • Improvement in Net Financial Cost: This positive factor was due to reduced loan principals and lower interest rates, partially offsetting the negative impact from gross profit and income tax increases.
• Results Not Yet Finalized: The figures are based on preliminary, unaudited management accounts and may differ from the final audited results.
• Board Composition: The announcement was signed by Chairman SONG Zhenghuan, and details the current board members, including executive, non-executive, and independent non-executive directors.

Important Information for Shareholders

• Price Sensitive Disclosure: The anticipated sharp reduction in net profit is a material event that could significantly affect Goodbaby International’s share price. Investors should be aware that the outlook for FY2025 is considerably weaker than the previous year.
• Caution Advised: Shareholders and potential investors are explicitly advised to exercise caution when dealing in the company’s shares until the audited annual results are published.
• Further Updates Pending: The company will release its official audited results for FY2025 in accordance with Hong Kong Listing Rules. Investors should monitor for these updates, as actual results may differ from current estimates.

Potential Share Price Impact

The announcement of a 35%–45% profit decline is highly newsworthy and likely to influence Goodbaby International’s share value, especially given the causes tied to both operational and tax factors. The market may react negatively to the news, as it suggests challenges in revenue growth and tax efficiency, despite improvements in financial costs.

Board Statement

The announcement was issued by Chairman SONG Zhenghuan on 16 February 2026, reiterating the company’s commitment to transparency and regulatory compliance.

Disclaimer

This article is based on preliminary and unaudited information disclosed by Goodbaby International Holdings Limited. Investors should not rely solely on this report for investment decisions and are encouraged to review the official audited annual results upon their release. The content herein does not constitute investment advice. Please exercise caution and consult a financial adviser before making any investment decisions regarding Goodbaby International Holdings Limited.