Hing Lee (HK) Holdings Limited Issues Profit Warning for FY2025

Date: 5 March 2026
Company: Hing Lee (HK) Holdings Limited (Stock Code: 396)

Key Highlights from the Profit Warning Announcement

• Significant Drop in Profits Expected: The Board of Hing Lee (HK) Holdings Limited has issued a profit warning, announcing that the Group expects to report a sharp decrease in consolidated profit attributable to equity holders for the year ended 31 December 2025.
• Estimated Profit for FY2025: The Group’s estimated consolidated profit attributable to equity holders is approximately HK\$0.8 million for FY2025, representing a dramatic decline compared to the previous year’s profit of approximately HK\$15.3 million for FY2024.
• Key Factors Behind the Decline:
  • Absence of Exceptional Gain: The previous year’s results were boosted by a one-off gain of about HK\$13.9 million from the disposal of the Group’s wholly-owned subsidiary, Success Profit International Limited. This gain is not present in the FY2025 results.
  • Decrease in Sales Revenue: The Group also experienced a decrease in sales revenue from its products, further contributing to the lower profits.
• Financials Not Yet Finalized: The financial results for FY2025 are still being finalized. The disclosed figures are based on preliminary unaudited management accounts and current information available to the Board.
• Subject to Audit: The figures have not been reviewed by the audit committee or audited by the Company’s auditors. The final annual results, which may differ from the current estimates, are expected to be published before the end of March 2026.

Potential Impact on Shareholders and Investors

• Price-Sensitive Information: The significant expected reduction in profit is a major development that could impact investor sentiment and influence the Company’s share price.
• Volatility Warning: Shareholders and potential investors are strongly advised to exercise caution when dealing in the Company’s shares in light of this profit warning and pending final results.
• Board Composition: Investors should note the current composition of the Board, which consists of two executive directors and three independent non-executive directors.

Summary

Hing Lee (HK) Holdings Limited has cautioned investors about an anticipated sharp decline in its FY2025 profits, primarily due to the absence of a significant one-off gain and lower sales revenue. This development is considered highly price-sensitive and may lead to increased share price volatility. Investors are urged to stay updated with the forthcoming audited results expected by March 2026 and to exercise prudence in their investment decisions.

Disclaimer: The above article is based on preliminary announcements made by Hing Lee (HK) Holdings Limited. Actual results may differ from current estimates once reviewed by auditors and finalized. Investors should exercise caution and seek professional advice before making investment decisions.

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