Global Corn Group Limited Issues Profit Warning for FY2025: Significant Net Loss Expected
Global Corn Group Limited (Stock Code: 03889), listed on The Stock Exchange of Hong Kong, has issued a profit warning in an announcement dated 2 March 2026. The company alerts shareholders and potential investors to an anticipated substantial deterioration in its financial performance for the year ended 31 December 2025 (“the Year”).
Key Financial Highlights
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Revenue Decline: The Group expects to record total revenue of approximately HK\$491.0 million for FY2025, representing a significant decrease from HK\$623.5 million in the previous year (FY2024).
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Net Loss Forecast: For the Year, the Group anticipates a net loss (before tax effect) in the range of HK\$120.0 million to HK\$140.0 million. This is a dramatic reversal from the net profit (before tax effect) of HK\$57.2 million recorded in FY2024.
Key Factors Impacting Results
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Market Oversupply & Competition: The persistent oversupply of sweetener products in Mainland China, coupled with intense market competition, has kept market prices under sustained downward pressure. In response, the Group implemented strategic adjustments to its production output to optimize operational rates for sweetener products, aiming to balance market presence and profitability. However, these measures did not fully offset the negative impact of market conditions.
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Absence of One-off Gains: Unlike the previous year, no major one-off gains were recognized in FY2025:
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No Debt Restructuring Gain: In FY2024, the Group recorded a one-off gain of approximately HK\$167.6 million following the completion of a debt restructuring agreement involving Jilin Branch of China Cinda Asset Management Co., Ltd. (creditor), Jinzhou Yuancheng Bio-chem Technology Co., Ltd. (debtor), and Shanghai Haocheng Food Development Co., Ltd. (guarantor), both subsidiaries of the Group.
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No Disposal Gain: In FY2024, the Group also recognized a one-off gain of approximately HK\$42.2 million from the disposal of Global Sweeteners Retail Investment Company Limited, a former wholly-owned subsidiary, and its subsidiaries.
Important Information for Shareholders
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These significant changes in the Group’s financial results are likely to be price sensitive and may materially affect the value of the Company’s shares.
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The information disclosed is based on a preliminary assessment of unaudited consolidated management accounts and may be subject to further adjustment upon finalization and audit.
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The final results announcement is expected to be published by the end of March 2026. Shareholders and potential investors are strongly advised to review the final results and exercise caution in trading shares of the Company.
Board Composition
As of the announcement date, the Board comprises three executive directors (Mr. Wang Tieguang, Mr. Kong Zhanpeng, and Mr. Li Fangcheng), one non-executive director (Mr. Tai Shubin), and three independent non-executive directors (Ms. Liu Ying, Ms. Li Guichen, and Mr. Lo Kwing Yu).
Disclaimer: This article is based on the Company’s preliminary unaudited financial results and other information currently available. The final audited results may differ. This article does not constitute investment advice. Investors should make their own assessment and seek professional advice where necessary. Trading in the Company’s shares should be undertaken with caution.
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